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Mobimo Holding AG

Interim / Quarterly Report Aug 4, 2016

933_10-q_2016-08-04_24316e39-32f6-4608-a320-79fd4626a363.pdf

Interim / Quarterly Report

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HALF-YEAR REPORT 2016

SELECTED KEY FIGURES FIRST HALF OF 2016

Mobimo reports a successful first half-year 2016. This was attributable to profit from trading properties and development services business, the positive gains from revaluation, the sale of two investment properties and a positive non-recurring deferred tax item.

Profit excl. revaluation, attributable to the shareholders of MOH CHF million HY 2015: 28.4

Total portfolio value

CHF million

¢¢ Development properties ¢¢ Investment properties

¢¢ Profit incl. revaluation ¢¢ Profit excl. revaluation,

attributable to the shareholders of MOH

Rental income and vacancy rate

¢¢ Rental income ¢¢ Vacancy rate

Income and profit on sale of trading properties and development services

CHF million

HY|2012 HY|2013 HY|2014 HY|2015 HY|2016

¢¢ Income on sale and services

¢¢ Profit

Earnings per share including and excluding revaluation CHF

¢¢ Earnings per share excl. revaluation

Result Unit HY 2016 HY 2015 Change in %
Net rental income CHF million 48.3 46.6 3.5
Profit on sale of trading properties and development services CHF million 17.0 1.3 1,203.5
Profit on disposal of investment properties CHF million 33.9 15.8 114.2
Net income from revaluation CHF million 20.9 9.7 114.5
Operating result (EBIT) CHF million 105.2 60.2 74.9
Operating result (EBIT) excluding revaluation CHF million 84.4 50.5 67.2
Profit CHF million 89.8 35.8 150.8
Profit attributable to the shareholders of MOH CHF million 89.5 35.6 151.4
Profit attributable to the shareholders of MOH excluding revaluation CHF million 74.2 28.4 161.3
Balance sheet Unit 30.06.2016 31.12.2015 Change in %
Assets CHF million 2,937.8 2,952.9 –0.5
Equity CHF million 1,273.5 1,264.7 0.7
Equity ratio % 43.3 42.8 1.2
Return on equity % 14.6 8.9 64.0
Return on equity excluding revaluation % 12.1 6.7 80.6
Interest-bearing liabilities CHF million 1,359.5 1,366.7 –0.5
Ø Rate of interest on financial liabilities % 2.39 2.46 –2.8
Ø Residual maturity of financial liabilities years 7.3 7.7 –5.2
Net Gearing % 86.4 90.4 –4.4
Portfolio Unit 30.06.2016 31.12.2015 Change in %
Overall portfolio CHF million 2,575 2,655 –3.0
Investment properties CHF million 2,023 2,132 –5.1
Development properties CHF million 552 523 5.6
Gross yield from investment properties % 5.5 5.4 1.9
Net yield from investment properties % 4.3 4.3 0.0
Investment property vacancy rate % 4.9 4.7 4.3
Ø Discount rate for revaluation % 4.04 4.08 –1.0
EPRA Unit HY 2016 HY 2015 Change in %
EPRA profit CHF million 22.4 21.8 2.8
EPRA NAV per share CHF 245.04 229.00 7.0
EPRA rental increase like for like % 0.4 0.7 –42.9
Headcount Unit 30.06.2016 31.12.2015 Change in %
Ø Headcount (full-time basis for the period) Number 118.8 107.4 10.6
Headcount (full-time basis) Number 128.3 107.8 19.0
Share Unit HY 2016 HY 2015 Change in %
Shares outstanding1 Number 6,215,326 6,216,953 –0.1
Nominal value per share CHF 29.00 29.00 0.0
NAV per share CHF 203.89 191.91 6.2
Earnings per share CHF 14.39 5.72 151.6
Earnings per share excluding revaluation CHF 11.93 4.57 161.1
Distribution per share2 CHF 10.00 9.50 5.3
Share price as at 30 June CHF 221.70 190.50 16.4

¹ No. of shares issued 6,218,170 less treasury shares 2,844 = no. of outstanding shares 6,215,326.

2 Distribution of paid-in capital for the 2015 financial year of CHF 10.00 per share according to the decision of the General Meeting of 29 March 2016. Some CHF 151 million was available for distribution of paid-in capital as at 31 December 2015, CHF 62 million of which was distributed; this means that approximately CHF 89 million is still available as at 30 June 2016.

OUR PROFILE

Mobimo Holding AG was established in Lucerne in 1999. With a real estate portfolio with a total value of more than CHF 2.5 billion, the Group is one of the leading real estate companies in Switzerland. The first-class portfolio is characterised by its exceptional locations, sustainability and diversified usage. We focus on the long-term holding, management and value-generating development of properties as well as the development and expansion of entire sites. With our site developments, we secure first-class locations in Switzerland with outstanding investment opportunities.

OUR VISION

Mobimo continually builds on its position in Switzerland, thus enabling it to generate added value for shareholders, customers and partners over the long term. Potential for capital appreciation and gains is realised through attractive and sustainable developments for the Group's own portfolio and for third parties. The clear strategy and solid business model ensure stable, regular returns and steady growth. Highly motivated staff and an environment characterised by reliability, fairness and professionalism also contribute to our success.

CONTENTS

Overview of Mobimo
Highlights of the first half of 2016 1
Letter to shareholders 2
Management structure 4
Mobimo on the capital market 6
Real estate portfolio 8
Strategy and business performance
Strategy and business model 12
Group business performance 13
Financial report
Consolidated interim financial statements 18
Property details 36
Auditor's review report 52
EPRA key performance measures 54

The three courtyards of the Letzihof newbuild in Zurich are decorated with photographs by the artist Annelies Štrba printed on weatherproof panels.

HIGHLIGHTS OF THE FIRST HALF OF 2016

INAUGURATION OF LETZIHOF

The new apartment building comprising 72 two-and-a-halfroom to four-and-a-half-room apartments was completed in March 2016 and already fully let a few weeks later. The building in Zurich's Albisrieden district features three light, interconnected courtyards

that link up the four-storey building and flood the apartments with natural light. The floors of the courtyards also serve as game spaces, with the pieces doubling up as mobile seating.

CONSTRUCTION STARTS ON LES GARAGES

Mobimo is building modern, modular spaces in the southern part of the Flon district that will be suitable for uses including workshops, art studios and shops. The individual properties comprise two to three floors. This conversion of the former garages, which until recently were used for storage purposes, will liven up the street and further enhance the district. Thanks to Les Garages, Mobimo can also offer new space to tenants in the Jumeaux buildings, which are soon to be converted.

RENTAL AGREEMENT SIGNED WITH SWISSCOM

Mobimo is realising an urban district with good transport links in Mattenhof in Lucerne South, with around 300 rental apartments, more than 27,000 m2 of office, commercial and gastronomy space and a 155-room Holiday Inn Express city hotel. Mattenhof will be a home or workplace for 2,000 people, including 400 Swisscom employees.

The telecommunications company signed a rental agreement for some 7,500 m2 of space over five floors in the first half of 2016. In addition to Swisscom as the anchor tenant, the Migros Lucerne Cooperative Association has also chosen the new district in Kriens as the location for a Migros-Markt.

VERY SUCCESSFUL FIRST HALF-YEAR FOR MOBIMO

Rental income CHF million HY | 2015: 52.6

Profit CHF million HY | 2015: 35.8

Return on equity

HY | 2015: 6.0

%

56.8

Dr. Christoph Caviezel, CEO, and Georges Theiler, Chairman of the Board of Directors

Dear shareholders

Mobimo continued to report a successful business performance. The company generated profit of CHF 89.8 million including revaluation in a more stable economic environment than expected. Profit attributable to shareholders excluding revaluation totalled CHF 74.2 million, making the first half of 2016 the most successful in Mobimo's history. Profit from trading properties and development services business, the gains from revaluation, the sale of two investment properties and a non-recurring deferred tax item were the main contributors to these results. There was also further growth in rental income. Earnings per share including revaluation stood at CHF 14.39 (CHF 11.93 excluding revaluation).

Gains from individual sales reinvested in the pipeline

Ultra-low interest rates continued to generate high demand among institutional investors, particularly for residential properties. Mobimo was not active as a purchaser in this transaction environment in the first half of 2016, preferring to use this as an opportunity to dispose of two investment properties at attractive prices. Mobimo's business model enabled it to compensate for these disposals with reinvestments in developments from its own pipeline. Properties with a volume of CHF 340 million are currently under construction, while projects worth around CHF 400 million are being planned.

Rising income from rental properties and the integration of FM Service & Dienstleistungs AG

Income from rental properties rose by 7.9% to CHF 56.8 million, although the composition of revenue was only partially comparable with the prior-year period. Mobimo sold investment properties with a carrying amount of some CHF 230 million in the last twelve months, bought the portfolio of Dual Real Estate Investment SA (market value of CHF 241.7 million as at 31 December 2015) in Geneva at the end of 2015 and handed over the Letzihof newbuild in Zurich with 72 apartments to tenants in spring 2016.

The vacancy rate remained low at 4.9% despite conversion-related vacancies. As part of its efforts to be even closer to its customers, Mobimo fully integrated the FM Service &Dienstleistungs AG joint venture launched in 2014 into the Group in the first half of 2016. FM Service &Dienstleistungs AG mainly provides facility management services for Mobimo's own properties and their tenants.

Brisk construction activity and good marketing successes

The Mobimo Group currently has major construction sites in Zurich, Kriens and Aarau. In late summer 2016, the foundation stone will be laid for the Labitzke site, which will feature 277 rental apartments as well as commercial and retail space, while the first ground will be broken for the development of a mixed-use urban district at Mattenhof in Kriens. With Swisscom as anchor tenant, the letting rate was in excess of 60% before construction started. Good progress has been made on the completion of the 92 condominiums in Aarau's Aeschbach district. Half of the attractive city apartments, which will be ready for occupation in 2017, have already been sold. Construction work has also started on the 185 rental apartments that are earmarked for completion in 2018. The Aeschbachhalle, a former industrial building, will be the centre of the new district. The main tenant for this exceptional location, which is ideal for gastronomy and various other events, was found in the first half of 2016. Mobimo started on the construction of Les Garages in the southern part of Lausanne's Flon district, which will create attractive commercial space.

Investments for Third Parties further expanded

The condominium ownership transfers recognised in net income in the first half of the year related mostly to the Am Meggerwald project in Lucerne. Investments for Third Parties completed the sale of a plot of land on the Mattenhof site, and the office building constructed for 3M EMEA in Langenthal was handed over after the reporting date following more than three years of development and building activity. With its acquisition of a two-thirds holding in BSS &M Real Estate AG in Zurich with effect from 1 July 2016, Mobimo is further expanding its development activities for third parties.

Outlook

The economic environment proved to be better than expected given the strength of the Swiss franc. The real estate market remained attractive, largely due to the extraordinarily low level of interest rates. We expect demand for residential property to remain stable, particularly in the urban centres. Office and sales space in prime locations and in high-quality properties continue to be in demand, although a measure of restraint has been evident among market participants in terms of new rentals and re-lettings. In this market environment, Mobimo is well positioned with an attractive portfolio and a well-filled development pipeline. The company's flexible business model enables it to take advantage of opportunities in a targeted manner as they arise. The Board of Directors and Executive Board continue to assess the outlook for the Group's future as positive.

Thank you for the trust you have placed in us.

Georges Theiler Dr. Christoph Caviezel Chairman of the Board of Directors CEO

MANAGEMENT STRUCTURE

Board of Directors

The Board of Directors is responsible for the company's strategic management. It acts as the supervisory body and comprises independent, external members. As at 30 June 2016, the following persons were members of the Board of Directors of Mobimo:

Daniel Crausaz

Engineer, Master of Business Administration Nationality: Swiss, Place of residence: Lausanne, VD Daniel Crausaz has been a member of the Board of Directors of Mobimo Holding AG since 2009. He is a member of the Audit& Risk Committee.

Georges Theiler, Chairman

Certified Operating Engineer, Federal Institute of Technology, Entrepreneur Nationality: Swiss, Place of residence: Lucerne, LU Georges Theiler has been a member of the Board of Directors since 2000 and Chairman of the Board of Directors of Mobimo Holding AG since September 2013. He is a member of the Real Estate Committee.

Brian Fischer

Attorney at law&Swiss-certified tax expert Nationality: Swiss Place of residence: Langnau am Albis, ZH Brian Fischer has been a member of the Board of Directors of Mobimo Holding AG since 2008. He is Chairman of the Real Estate Committee.

Peter Schaub, Vice Chairman Attorney at law

Nationality: Swiss, Place of residence: Uster, ZH Peter Schaub has been a member of the Board of Directors of Mobimo Holding AG since 2008. He is Chairman of the Audit & Risk Committee and a member of the Nomination & Compensation Committee.

Bernard Guillelmon

Engineer, Masters in Energy, MBA Nationalities: Swiss and French Place of residence: Berne, BE Bernard Guillelmon joined the Board of Directors of Mobimo Holding AG in 2009. He is Chairman of the Nomination& Compensation Committee.

Peter Barandun Executive MBA HSG Nationality: Swiss, Place of residence: Einsiedeln, SZ Peter Barandun was elected to the Board of Directors of Mobimo Holding AG in March 2015. He is a member of the Real Estate Committee.

Wilhelm Hansen

lic. rer. pol., Management Consultant Nationality: Swiss Place of residence: Basel, BS Wilhelm Hansen has been a member of the Board of Directors of Mobimo Holding AG since 2008. He is a member of the Audit& Risk Committee and of the Nomination& Compensation Committee.

Board of Directors

Chairman: Georges Theiler Vice Chairman: Peter Schaub

Peter Barandun, Daniel Crausaz, Brian Fischer, Bernard Guillelmon, Wilhelm Hansen

Real Estate Committee

Brian Fischer (Chairman) Peter Barandun Georges Theiler

Audit&Risk Committee

Peter Schaub (Chairman) Daniel Crausaz Wilhelm Hansen

Nomination&Compensation Committee

Bernard Guillelmon (Chairman) Wilhelm Hansen Peter Schaub

Executive Board

The Executive Board is charged with the operational management of the Group companies. As at 30 June 2016, the following persons were members of the Executive Board:

Andreas Hämmerli, Head of Development Certified architect HTL Nationality: Swiss Place of residence: Scheuren, BE Andreas Hämmerli has headed the Development division since October 2008. He is responsible for project development, construction and sales.

Dr. Christoph Caviezel, CEO Dr. iur., attorney at law Nationality: Swiss Place of residence: Horgen, ZH Christoph Caviezel has been CEO of

Divestment division.

the Mobimo Group since October 2008. He directly manages the Purchase and

Thomas Stauber, Head of Real Estate

Certified civil engineer ETH/ SIA Nationality: Swiss Place of residence: Meilen, ZH Thomas Stauber joined Mobimo in November 2011 and set up the Investments for Third Parties business area. He has headed the Real Estate division since July 2014.

Manuel Itten, CFO Business Administration FH Nationality: Swiss Place of residence: Freienbach, SZ Manuel Itten joined Mobimo in 2004 and has been CFO since March 2009.

Marc Pointet, Head of Mobimo Suisse romande

MSc in architecture from the Swiss Federal Institute of Technology, Executive MBA HSG Nationality: Swiss, Place of residence: Lausanne, VD Marc Pointet joined Mobimo in November 2006 and has been Head of Mobimo Suisse romande since March 2013. He has been a member of the Executive Board since April 2015.

The complete corporate governance report and information about the Group companies and the Group's shareholdings are published at www.mobimo.ch.

MOBIMO ON THE CAPITAL MARKET

The registered shares of Mobimo Holding AG are traded on the SIX Swiss Exchange in Zurich and are listed in accordance with the Standard for Real Estate Companies.

Code MOBN
Swiss security no. 1110 887
ISIN code CH001110 8872
Bloomberg MOBN SW Equity
Reuters MOBN.S

Performance of the Mobimo share

The Mobimo share started 2016 with a price of CHF 222.70 and closed at CHF 221.70 on 30 June 2016. This corresponds to a performance (total return) of 4.04%. Net asset value (NAV) and diluted NAV stood at CHF 203.89 as at 30 June 2016 (31 December 2015: CHF 202.45) after distribution of the dividend of CHF 10.00. As at 30 June 2016, Mobimo's share price of CHF 221.70 was 9% above the NAV. The Mobimo share price (dividend-adjusted) has risen by 23.4% over the past five years, while the SPI and SXI Real Estate Shares indices have increased by 52.4% and 42.9% respectively over the same period.

Share price compared with NAV/ share

¢¢ Share price ¢¢ NAV per share (diluted)

The Mobimo share has a high level of liquidity and a high trading volume. An average of 12,521 (first half of 2015: 12,387) shares were traded each day. The average daily turnover amounted to approximately CHF 2.8 million (first half of 2015: CHF 2.6 million) and the trading volume to CHF 344 million (first half of 2015: CHF 319 million).

Shareholder structure

As at 30 June 2016, the following shareholders held 3% or more of the share capital:

  • BlackRock, Inc., 4.97%
  • Zuger Pensionskasse, 3.38%

According to the SIX Swiss Exchange definition, the free float stood at 100% as at 30 June 2016.

Composition of shareholders

  • ¢ Individuals ¢ Pension funds, insurers, banks
  • ¢ Foundations, funds
  • ¢ Other companies

%

¢ Shares pending registration 28.7

Mobimo share data

Unit 2012 2013 2014 2015 2016
Ratios as at 30.06.
Share capital CHF million 180.0 180.2 180.3 180.3 180.3
No. of registered shares issued Number 6,207,952 6,214,478 6,216,606 6,218,170 6,218,170
Of which treasury shares Number 8,744 2,148 1,623 1,217 2,844
No. of registered
shares outstanding
Number 6,199,208 6,212,330 6,214,983 6,216,953 6,215,326
Nominal value per
registered share
CHF 29.00 29.00 29.00 29.00 29.00
Share data as at 30.06.
Earnings per share CHF 6.40 6.66 3.17 5.72 14.39
Earnings per share not
including revaluation
CHF 3.64 3.81 2.36 4.57 11.93
NAV per share after options
and convertible bond
CHF 188.44 193.51 191.03 191.91 203.89
Gross dividend for prior year CHF 9.00 9.00 9.50 9.50 10.00
Share price HY 2016
Share price – High CHF 221.10 213.60 198.00 229.40 234.30
Share price – Low CHF 194.42 186.50 184.90 190.50 206.10
Share price as at 30.06. CHF 219.10 192.20 188.00 190.50 221.70
Average no. of shares
traded per day
Number 9,307 12,476 9,657 12,387 12,521
Market capitalisation on 30.06. CHF million 1,360.2 1,194.4 1,168.7 1,184.6 1,378.6

Mobimo bonds

For the long-term funding of the real estate portfolio, Mobimo has issued three bonds in order to make use of the attractive interest rates and further diversify its financing. The three bonds are traded on the SIX Swiss Exchange in Zurich. The total financing volume amounts to CHF 515 million.

Key Mobimo bond data

Issue date 29.10.2013 19.05.2014 16.09.2014
Code MOB13 MOB14 MOB141
Swiss security no. 22,492,349 24,298,406 25,237,980
ISIN code CH0224923497 CH0242984067 CH0252379802
Issue volume CHF 165 million CHF 200 million CHF 150 million
Bloomberg MOBN SW MOBN SW MOBN SW
Reuters 785VD6 792ZMZ 797G6K
Interest rate 1.5% 1.625% 1.875%
Term 5 years 7 years 10 years
Maturity 29.10.2018 19.05.2021 16.09.2024
Price as at
30.06.2016 CHF 103.60 CHF 107.40 CHF 112.90
Yield to maturity –0.044% 0.107% 0.286%

REAL ESTATE PORTFOLIO

As at 30 June 2016, Mobimo's real estate portfolio comprised 137 properties. It can be broken down into investment properties with a value of CHF 2,023 million and development properties with a value of CHF 552 million.

CHF million 30.06.
2016
% 31.12.
2015
%
Investment properties 2,023 79 2,132 80
Commercial investment
properties
1,368 53 1,372 52
Residential investment
properties
655 26 760 28
Development properties 552 21 523 20
Commercial properties
(investment)
180 7 171 6
Residential properties
(investment)
139 5 125 5
Commercial properties
(trading)
36 1 29 1
Residential properties
(trading)
198 8 198 8

Portfolio figures

Investment properties

79% of the real estate portfolio comprises investment properties. These are widely diversified in terms of both their location, in Switzerland's major economic areas, and type of use. The annual potential rental income generated by the rentable area of 460,000 m² as at 30 June 2016 was CHF 110 million, producing stable and predictable income.

Own portfolio management team

Mobimo manages the portfolio through its own portfolio management team, which gives it proximity to the market and to its tenants. Value is maintained and increased by cultivating relationships with tenants, ensuring a high level of occupancy, imposing lean cost management and implementing appropriate marketing strategies.

The five biggest tenants generate 20.6% of rental income. The existing fixed-term rental agreements primarily have a medium to long-term maturity profile. The average residual term is 6.8 years.

Breakdown of portfolio by economic area %

  • ¢ French-speaking Switzerland
  • ¢ Zurich
  • ¢ North-western Switzerland
  • ¢ Eastern Switzerland
  • ¢ Central Switzerland

Shares of the five biggest tenants

¢ SV Group

%

Development properties

Mobimo feeds its own investment portfolio by means of targeted ongoing development of residential and commercial properties. The newly constructed investment properties further enhance the portfolio's quality.

Mobimo is currently planning and realising properties with a total investment volume of around CHF 940 million, which breaks down into CHF 740 million for investment properties and CHF 200 million for trading properties.

In addition to developments for its own portfolio and for sale, Mobimo is also active in the area of development services for third parties. Its offering ranges from area, site and project developments to turn-key real estate investments for institutional and private investors. The form taken by each cooperation with a partner depends on the specific requirements and on the project phase reached. Here too, the focus is on sustainable implementation.

STRATEGY AND BUSINESS PERFORMANCE

Strategy and business model 12 Group business performance 13

STRATEGY AND BUSINESS MODEL

The clear, long-term strategy and proven, solid business model ensure that we can achieve our vision and long-term objectives.

Mobimo plans, builds and maintains high-yield investment properties and realises development properties offering attractive potential for capital appreciation and gains. The company has solid financing and a high equity ratio of at least 40%.

In addition to the company's long-term guaranteed financing, the management and expansion of the high-value investment portfolio is based on Mobimo's core competences: buying/selling, development and portfolio management. The investment portfolio comprises commercial, industrial and residential properties with broad-based rental income and correspondingly steady returns.

Developments enable the company to realise upside potential and capital gains. Furthermore, Investments for Third Parties offers development services for third parties up to and including turn-key real estate investments for institutional and private investors. Owner-occupied properties are also developed as condominium apartments and sold to the new owners.

Long-term strategy

Qualitative growth

Mobimo strives to gradually grow its real estate portfolio. This growth takes place primarily through the construction of investment properties for the company's own portfolio as well as through the acquisition of individual properties and portfolios. Growth may also be achieved via company takeovers.

The decision to grow is taken when the elements of price, location and future prospects come together in such a way as to create value for shareholders. Mobimo invests in promising locations in Switzerland. We see these primarily as the economic areas of Zurich and Lausanne / Geneva, together with those of Basel, Lucerne / Zug, Aarau and St. Gallen. Investments are only made in sustainably good locations.

Balanced portfolio mix

Over the medium term, residential use, office use and other commercial uses each account for approximately 30% of the investment portfolio.

Active portfolio management

The real estate portfolio is optimised on an ongoing basis. Value is rigorously maintained and increased by cultivating relationships with tenants, ensuring a high level of occupancy, optimising costs and implementing effective marketing strategies.

Added value through development

Real estate development focuses on the following areas:

  • development and construction of new investment properties for our own portfolio,
  • site development,
  • continued development and optimisation of our own real estate holdings,
  • development and investments for third parties,
  • development, construction and sale of owner-occupied properties.

Added value for both shareholders and the users of Mobimo properties

Sustainability

For Mobimo, sustainability means striking a balance between generating profits today and preserving and enhancing value over the long term. Quality of life is reflected in the design of our living, leisure and working spaces. In addition to economic considerations, Mobimo also incorporates environmental and socio-cultural factors into its activities. This results in added value for both shareholders and the users of Mobimo properties.

Solid financing

Mobimo can borrow on both a short and long-term basis. Equity should represent at least 40% of total assets.

Profitable investment

Mobimo shares are characterised by steady value growth and regular, attractive payouts.

GROUP BUSINESS PERFORMANCE

Mobimo enjoyed a very successful start to the 2016 financial year and generated the highest result in the first half of a year in the company's history. The reporting period was shaped by profit on the sale of trading properties and development services, the further growth in rental income and the successful sales of individual investment properties.

Financial performance

  • Rise in profit from CHF 35.8 million (first half of 2015) to CHF 89.8 million in a successful first half of the year,
  • Marked 74.9% rise in EBIT to CHF 105.2 million (first half of 2015: CHF 60.2 million); EBIT not including revaluation up by 67.2% to CHF 84.4 million (first half of 2015: CHF 50.5 million),
  • Increase in profit on the sale of trading properties and development services to CHF 17.0 million (first half of 2015: CHF 1.3 million).

In the first half of 2016, income from rental properties rose by 7.9% to CHF 56.8 million (first half of 2015: CHF 52.6 million). The ratio arising from direct expenses for rented properties was 15% and higher than the prior year's level (first half of 2015: 11%), which resulted in a 3.5% rise in net rental income to CHF 48.3 million (first half of 2015: CHF 46.6 million). As at 30 June 2016, the vacancy rate was 4.9%, thus remaining at a low level (31 December 2015: 4.7%). The low vacancy rate was due to good rental income and active portfolio management.

The annual potential rental income declined by CHF 5 million in the first half of the year as a result of the sale of two investment properties. The reduction will be offset over the course of the 2016 financial year by the completion of the two investment properties:

  • Kriens, Sternmatt 6 (multi-storey parking),
  • Zurich, Letzigraben (residential property).

This will result once again in a CHF 3 million increase in the annual potential rental income.

Additional potential rental income in excess of CHF 30 million is attributable to the planned realisation of the following projects from the current pipeline:

  • Aarau, Site 2 (Torfeld Süd),
  • Horgen, Seestrasse 93 (Grob site),
  • Kriens, Mattenhof I,
  • Lausanne, Rue Côtes-de-Montbenon (Les Garages),
  • Lausanne, Rue Côtes-de-Montbenon (Flon),
  • Lausanne, Rue de Genève 19/21 (Jumeaux),

  • Lausanne, Vigie 3,

  • Zurich, Hohlstrasse.

The potential will be realised upon completion of the projects.

Key financial performance figures

48.3
46.6
3.5
1,203.5
15.8 114.2
60.2 74.9
50.5 67.2
–17.5 16.0
–8.1 64.2
35.8 150.8
161.3
17.0
1.3
33.9
105.2
84.4
–14.7
–2.9
89.8
74.2
28.4

Rental income by type of use (portfolio excluding trading properties)

%

1 Other use mainly comprises car parks and ancillary uses.

Income from trading properties and development services already came to CHF 59.7 million in the first half of the year (first half of 2015: CHF 17.7 million). As a result, profit from trading properties and development services rose significantly to CHF 17.0 million (first half of 2015: CHF 1.3 million). 23 condominiums and one plot of land were transferred to new owners in the first half of the year. The development services rendered also generated additional income.

The transferred condominiums are primarily related to the following project:

• Lucerne, Büttenenhalde.

The following plot of land was transferred:

• Kriens, Mattenhof II.

The high demand in the transaction market was used to realise attractive gains from the extraordinary sale of two investment properties. The sales generated proceeds of CHF 153.2 million (first half of 2015: CHF 76.8 million) and profit of CHF 33.9 million (first half of 2015: CHF 15.8 million).

As a result of market conditions, the average discount rate for revaluations as at 30 June 2016 declined to 4.04% (31 December 2015: 4.08%), which once again had a particularly positive impact on residential property valuations. The revaluation of investment properties and of investment properties under construction resulted in net income from revaluation of CHF 20.9 million (first half of 2015: CHF 9.7 million).

In the first half of 2016, earnings before tax (EBT) of CHF 92.8 million (first half of 2015: CHF 43.9 million) gave rise to a 111.4% increase in the result.

Tax expense of CHF 2.9 million was significantly below the figure recorded for the first half of 2015 (CHF 8.1 million). This was the result of a non-recurring special item in the calculation of deferred tax owing to a new statutory reduction of a future cantonal tax rate.

Profit including revaluation totalled CHF 89.8 million in the first half of the year, which represents a 150.8% increase over the prior-year period (first half of 2015: CHF 35.8 million). Profit attributable to shareholders not including revaluation of CHF 74.2 million (first half of 2015: CHF 28.4 million) represented a 161.3% increase over the prior-year period. This development was the result of Mobimo's excellent business performance.

Financial position

  • At CHF 2,937.8 million, total assets were at the prior-year level (31 December 2015: CHF 2,952.9 million),
  • Solid equity ratio of 43.3% (31 December 2015: 42.8%) the basis for further high-quality growth,
  • Return on equity of 14.6% (31 December 2015: 8.9%).

Key financial position figures

Unit 30.06.
2016
31.12.
2015
Change in %
Non-current assets CHF
million
2,385.5 2,467.7 –3.33
Current assets CHF
million
552.3 485.2 13.83
Equity CHF
million
1,273.5 1,264.7 0.70
Return on equity
including
revaluation
% 14.6 8.9 64.04
Return on equity
not including
revaluation
% 12.1 6.7 80.60
Liabilities CHF
million
1,664.3 1,688.2 –1.42
• Current liabilities CHF
million
176.4 138.3 27.55
• Non-current
liabilities
CHF
million
1,487.9 1,549.9 –4.00
Equity ratio % 43.3 42.8 1.17

CHF million

At CHF 2,937.8 million, total assets at the end of the first half of 2016 remained virtually unchanged (31 December 2015: CHF 2,952.9 million). The share of non-current assets in total assets was down slightly as at the end of the first half-year to 81.2% (31 December 2015: 83.6%). This decline can be particularly attributed to the sales of the two investment properties, which have already been partially offset by the increase in the portfolio owing to the ongoing investment in properties under construction.

With an equity ratio of 43.3% as at 30 June 2016 (31 December 2015: 42.8%), Mobimo continues to have a very solid capital base. This ensures a stable foundation for further high-quality growth. According to the Mobimo strategy, the equity ratio should not fall below 40%. At 5.5, the interest coverage factor in the first half of the year was once again clearly above the targeted 2.0. This means that Mobimo is readily able to finance its financial obligations from its operating activities.

Mobimo seeks to ensure a solid capital base. With regard to its capital structure, Mobimo aims to achieve long-term net gearing of a maximum of 150%. At the end of the first half of 2016, net gearing stood at 86.4% (31 December 2015: 90.4%).

Financial liabilities currently consist of listed bonds and mortgagesecured bank loans. The average interest rate for financial liabilities was 2.39% in the first half of 2016 (31 December 2015: 2.46%). The average residual maturity of financial liabilities as at the reporting date was 7.3 years (31 December 2015: 7.7 years), and was therefore still in the targeted long-term range. Mobimo will continue to use the attractive interest rate environment to keep interest rates low in the long term.

Outlook

In this challenging macroeconomic environment, Mobimo relies on a high degree of expertise and flexibility in the allocation of funds and resources. The proven business model facilitates this sense of flexibility. Mobimo possesses renowned expertise, is very agile on the market and is adept at seizing any opportunities that arise. As a result, the Board of Directors and Executive Board continue to assess the outlook for the Group's future as positive. They strive to meet the expectations of shareholders over the short, medium and long term. This also includes the continuation of the attractive and stable dividend policy.

Manuel Itten CFO

FINANCIAL REPORT

Consolidated interim financial statements 18
Property details 36
Review Report to the Board of Directors of
Mobimo Holding AG, Lucerne
52
EPRA key performance measures 54

CONSOLIDATED INCOME STATEMENT

TCHF Note HY 2016 HY 2015
Income from rental of properties 5 56,778 52,624
Income from sale of trading properties and development services 7 59,666 17,695
Other income 1,052 354
Revenue 117,496 70,672
Gains from revaluation of investment properties 6 38,191 33,900
Losses on revaluation of investment properties 6 –17,327 –24,173
Net income from revaluation 20,864 9,728
Profit on disposal of investment properties 6 33,861 15,809
Direct expenses for rented properties 5 –8,525 –6,004
Direct expenses from sale of trading properties and development services 7 –42,681 –16,392
Direct operating expenses –51,205 –22,396
Capitalised own account services 2,605 3,475
Personnel expenses –11,728 –10,991
Operating expenses –3,822 –3,889
Administrative expenses –1,559 –1,198
Earnings before interest, tax, depreciation and amortisation (EBITDA) 106,512 61,211
Depreciation –878 –790
Amortisation –392 –240
Earnings before interest and tax (EBIT) 105,241 60,181
Share of profit of equity-accounted investees 2,205 1,202
Financial income 383 162
Financial expense –15,102 –17,664
Financial result –14,718 –17,501
Earnings before tax (EBT) 92,728 43,882
Tax expense 12 –2,939 –8,131
Profit 89,790 35,752
Of which attributable to the shareholders of Mobimo Holding AG 89,454 35,560
Of which attributable to non-controlling interests 335 192
EBITDA not including revaluation 85,647 51,483
Operating result (EBIT) not including revaluation 84,377 50,454
Earnings before tax (EBT) not including revaluation 71,864 34,155
Earnings per share in CHF 13 14.39 5.72
Diluted earnings per share in CHF 13 14.39 5.72

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

TCHF Note HY 2016 HY 2015
Profit 89,790 35,752
Items that may be reclassified subsequently to income statement –14,901 –992
• Loss on financial instruments for hedge accounting 10 –19,196 –1,244
• Reclassification adjustments for amounts recognised in income statement 79 –29
• Tax effects 4,217 281
Items that will not be reclassified to income statement –2,716 –635
• Remeasurement in staff pension schemes –3,314 –788
• Tax effects 598 154
Total other comprehensive income –17,617 –1,626
Of which attributable to the shareholders of Mobimo Holding AG –17,617 –1,626
Of which attributable to non-controlling interests 0 0
Total comprehensive income 72,173 34,125
Of which attributable to the shareholders of Mobimo Holding AG 71,837 33,933
Of which attributable to non-controlling interests 335 192

CONSOLIDATED BALANCE SHEET

TCHF
Note
30.06.2016 31.12.2015
Assets
Current assets
Cash 258,861 222,897
Trade receivables 9,705 3,839
Income tax receivables 4,533 4,005
Other receivables 41,566 24,391
Trading properties
8
233,696 226,564
Accrued income and prepaid expenses 3,928 3,523
Total current assets 552,289 485,218
Non-current assets
Investment properties
• Commercial properties
6
1,353,149 1,357,011
• Residential properties
6
655,432 760,117
• Development properties
6
146,114 142,470
• Investment properties under construction
6
172,250 153,170
Property, plant and equipment
• Owner-occupied properties 14,829 15,269
• Other property, plant and equipment 3,403 3,117
Intangible assets 7,612 6,892
Investments in associates and joint ventures 26,544 25,639
Financial assets 1,849 1,849
Deferred tax assets 4,292 2,126
Total non-current assets 2,385,474 2,467,660
Total assets 2,937,763 2,952,878
TCHF Note 30.06.2016 31.12.2015
Equity and liabilities
Liabilities
Current liabilities
Current financial liabilities 9 79,795 24,403
Trade payables 18,746 16,963
Current tax liabilities 24,317 57,798
Other payables 5,951 5,425
Advance payments from buyers 14,052 12,354
Accrued expenses and deferred income 33,502 21,363
Total current liabilities 176,362 138,306
Non-current liabilities
Non-current financial liabilities 9 1,279,671 1,342,254
Employee benefit obligation 9,452 5,840
Derivative financial instruments 9 / 10 57,187 38,998
Deferred tax liabilities 141,623 162,789
Total non-current liabilities 1,487,933 1,549,880
Total liabilities 1,664,295 1,688,187
Equity 11
Share capital 180,327 180,327
Treasury shares –620 –262
Capital reserves 207,450 269,577
Retained earnings 880,110 808,975
Total equity attributable to the shareholders of Mobimo Holding AG 1,267,267 1,258,617
Attributable to non-controlling interests 6,201 6,074
Total equity 1,273,468 1,264,691
Total equity and liabilities 2,937,763 2,952,878

CONSOLIDATED CASH FLOW STATEMENT

Earnings before tax
92,728
43,882
Net gains from revaluation of investment properties
6
–20,864
–9,728
Share-based payments
476
233
Depreciation on property, plant and equipment and amortisation of lease incentives
1,316
1,265
Amortisation of intangible assets
392
240
Profit on disposal of investment properties
6
–33,861
–15,809
Profit on disposal/ derecognition of property, plant and equipment
–2
0
Share of profit of associates
–2,205
–1,202
Financial result
14,718
17,501
Changes
• Trade receivables
–5,236
–612
• Trading properties
13,066
–16,073
• Other receivables and accrued income and prepaid expenses
–34,481
750
• Employee benefit obligation
298
278
• Trade payables
–3,136
–5,632
• Advance payments from buyers
1,198
5,438
• Other liabilities and accrued expenses and deferred income
9,514
1,655
Income tax paid
–38,160
–9,894
Net cash from operating activities
–4,240
12,293
Acquisition of subsidiaries, net of cash acquired
395
0
Acquisition of investment properties
–24,850
–35,131
Acquisition of property, plant and equipment
–706
–482
Acquisition of intangible assets
–1,020
–709
Disposal of property, plant and equipment
2
0
Disposal of investment properties less selling costs
6
152,436
76,654
Dividends received
1,239
1,150
Interest received
31
50
Net cash from investing activities
127,527
41,531
Repayment of financial liabilities
9
–7,061
–32,968
Net cash from capital increases
0
45
Distribution of capital contribution reserves
–62,153
–59,061
Acquisition of non-controlling interests
–208
0
Acquisition of treasury shares
–1,511
0
Interest paid
–16,391
–15,065
Net cash used in financing activities
–87,323
–107,048
Increase /decrease in cash
35,964
–53,225
TCHF Note HY 2016 HY 2015
Cash at beginning of reporting period
222,897
227,380
Cash at end of reporting period
258,861
174,156

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

As at 30.06.2016 180,327 –620 207,450 –36,087 916,197 880,110 1,267,267 6,201 1,273,468
Purchase of non
controlling interests
1 1 1 –209 –208
Acquisition of
treasury shares
–1,511 –1,511 –1,511
• Board of Directors
and management
1,153 26 –703 –703 476 476
Share-based payments:
Distribution of capital
contribution reserves
–62,153 –62,153 –62,153
Total comprehensive
income
0 0 0 –14,901 86,738 71,837 71,837 335 72,173
income 0 0 0 –14,901 –2,716 –17,617 –17,617 0 –17,617
Other comprehensive
• Tax effects 598 598 598 598
• Remeasurement –3,314 –3,314 –3,314 –3,314
Staff pension schemes:
• Tax effects 4,217 4,217 4,217 4,217
• Transfer to
income statement
79 79 79 79
• Change in fair value –19,196 –19,196 –19,196 –19,196
Cash flow hedges: 10
Profit HY 2016 89,454 89,454 89,454 335 89,790
As at 01.01.2016 180,327 –262 269,577 –21,187 830,162 808,975 1,258,617 6,074 1,264,691
As at 30.06.2015 180,327 –236 269,565 –17,428 760,861 743,433 1,193,089 4,774 1,197,863
• Board of Directors and
management
79 11 143 143 233 233
Share-based payments:
Capital increase 11 45 45 45
Distribution of capital
contribution reserves
–59,061 –59,061 –59,061
income 0 0 0 –992 34,925 33,933 33,933 192 34,125
income
Total comprehensive
0 0 0 –992 –635 –1,626 –1,626 0 –1,626
Other comprehensive
• Tax effects 154 154 154 154
• Remeasurement –788 –788 –788 –788
Staff pension schemes:
income statement
• Tax effects
–29
281
–29
281
–29
281
–29
281
• Transfer to
• Change in fair value –1,244 –1,244 –1,244 –1,244
Cash flow hedges: 10
Profit HY 2015 35,560 35,560 35,560 192 35,752
As at 01.01.2015 180,282 –315 328,615 –16,436 725,793 709,357 1,217,938 4,582 1,222,520
TCHF Note Share
capital
Treasury
shares
Capital
reserves
Hedging
reserve
retained
earnings
retained
earnings
holders of Mobimo
Holding AG
controlling
interests
Total
equity
Other Total Equity attributable
to the share
Non

NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS

GENERAL INFORMATION

1. Business activities

The Mobimo Group is a real estate company which operates exclusively in Switzerland. Its business activities consist of the long-term holding and management of commercial, industrial and residential properties, the construction and selling of owner-occupied residential properties and the development of commercial and residential properties for its own portfolio and third-party investors.

The parent company is Mobimo Holding AG, a public limited company under Swiss law, headquartered in Lucerne and listed on the SIX Swiss Exchange.

2. Group accounting policies

General information

The consolidated interim financial statements of the Mobimo Group for the first half of 2016 have been produced in accordance with International Accounting Standard 34 (IAS 34) on interim financial reporting and comply with Article 17 of the SIX Swiss Exchange Directive on Financial Reporting.

The consolidated interim financial statements as at 30 June 2016 do not contain all information and disclosures required for annual financial reporting and should therefore be read in conjunction with the consolidated financial statements as at 31December 2015.

All amounts contained in the consolidated interim financial statements are shown in thousands of Swiss francs (TCHF), unless stated otherwise. The sums and totals of the individual positions may be larger or smaller than 100% due to rounding.

The accounting principles applied in the consolidated interim statements correspond to the Group accounting principles set out in the consolidated annual financial statements for 2015, with the exception of the new standards and interpretations applicable with effect from 1 January 2016.

Use of estimates and assumptions and the application of judgement

In preparing the consolidated interim financial statements, management is required to make estimates and assumptions which affect reported income, expenses, assets, liabilities and contingent assets and liabilities as at the reporting date.

The main estimates and assumptions used in the measurement of assets and liabilities affect the market values of investment properties, the estimate of construction costs of trading properties and income tax. This is unchanged from the consolidated financial statements as at 31December 2015. On the real estate market at present it can be observed that, owing to the current negative interest rate environment, institutional investors are in some cases buying properties at good locations offering very low yields, their hands forced by the dearth of other investment options. This unforeseeable investor behaviour could result in some properties fetching higher sales prices than their most recent estimates of market value.

New standards /interpretations applied

With effect from 1 January 2016, Mobimo uses the following newly applicable or amended standards and interpretations:

  • Amendments to IFRS Annual Improvements to IFRS 2012−2014,
  • Amendments to IFRS 11 Accounting for Acquisitions of Interests in Joint Operations,
  • Amendments to IAS 16 and IAS 38 Clarification of Acceptable Methods of Depreciation and Amortisation.

The amendments had no effect on the interim financial statements.

Standards /interpretations published but not yet applied

The following new and revised standards and interpretations have been approved but will only enter into force at a later date and were not applied in advance in these interim financial statements.

Standard /Interpretation Entry into force Planned application
by Mobimo
Amendments to IAS 7 Disclosure Initiative * 01.01.2017 2017 financial year
Amendments to IAS 12 Recognition of Deferred Tax Assets for
Unrealised Losses
* 01.01.2017 2017 financial year
IFRS 9 Financial Instruments * 01.01.2018 2018 financial year
IFRS 15 Revenue from Contracts with Customers ** 01.01.2018 2018 financial year
IFRS 16 Leases *** 01.01.2019 2019 financial year
Amendments to IFRS 10 and IAS 28 Sales or contributions of assets between an investor
and its associate /joint venture
* to be decided not defined

* No impact or no significant impact expected on Mobimo's consolidated financial statements.

** The potential impact on Mobimo's consolidated financial statements is described in the consolidated annual financial statements as at 31 December 2015.

*** Mobimo is currently analysing the impact.

3. Seasonal business

Some of Mobimo's activities do not generate steady income over the course of the year. These include revenues from trading properties and development services in particular. Higher income may be generated in the first or second half of the year depending on the number of properties transferred or the volume of projects.

SEGMENT REPORTING

4. Segment reporting

Segment information for the first half of 2016

TCHF Real Estate Development Total segments Reconciliation Total
Income from rental of properties 53,110 3,668 56,778 56,778
Net income from revaluation 8,675 12,190 20,864 20,864
Income from sale of trading properties and development
services 31,465 28,201 59,666 59,666
Profit on disposal of investment properties 33,861 0 33,861 33,861
Other income 1,052 0 1,052 1,052
Total segment income 128,163 44,059 172,221 172,221
Segment result EBIT1 94,759 11,113 105,873 –631 105,241
Share of profit of equity-accounted investees 2,205
Financial result –14,718
Earnings before tax (EBT) 92,728
Tax –2,939
Profit 89,790
Trading properties 80,412 153,284 233,696 233,696
Investment properties 2,008,581 146,114 2,154,695 2,154,695
Owner-occupied properties 14,829 14,829 14,829
Investment properties under construction 172,250 172,250 172,250
Total segment assets 2,103,822 471,648 2,575,470 2,575,470
Non-attributed assets 362,293 362,293
Total assets 2,937,763
Depreciation and amortisation –660 –610 –1,270 –1,270
Investments in non-current assets 1,776 29,284 31,061 1,755 32,816

1 Reconciliation EBIT is the compensation for the Board of Directors.

Segment information for the first half of 2015

TCHF Real Estate Development Total segments Reconciliation Total
Income from rental of properties 49,021 3,602 52,624 52,624
Net income from revaluation 9,525 203 9,728 9,728
Income from sale of trading properties and
development services 0 17,695 17,695 17,695
Profit on disposal of investment properties 15,809 0 15,809 15,809
Other income 354 0 354 354
Total segment income 74,709 21,500 96,209 96,209
Segment result EBIT1 63,363 –2,558 60,805 –624 60,181
Share of profit of equity-accounted investees 1,202
Financial result –17,501
Earnings before tax (EBT) 43,882
Tax –8,131
Profit 35,752
Trading properties 29,090 200,313 229,404 229,404
Investment properties 1,845,798 211,704 2,057,502 2,057,502
Owner-occupied properties 15,637 15,637 15,637
Investment properties under construction 165,130 165,130 165,130
Total segment assets 1,890,525 577,147 2,467,672 2,467,672
Non-attributed assets 250,218 250,218
Total assets 2,717,890
Depreciation and amortisation –469 –560 –1,029 –1,029
Investments in non-current assets 6,221 26,931 33,152 1,191 34,344

1 Reconciliation EBIT is the compensation for the Board of Directors.

INVESTMENT PORTFOLIO

5. Net rental income

Rental income can be broken down as follows:

TCHF HY 2016 HY 2015
Commercial properties 39,589 39,993
Residential properties 16,283 12,369
Income from rental of
investment properties 55,872 52,362
Trading properties1 906 261
Total income from rental
of properties 56,778 52,624
Commercial properties –5,880 –4,711
Losses on receivables commercial
properties
–31 46
Residential properties –2,389 –1,302
Losses on receivables residential
properties
–56 37
Investment property expense –8,355 –5,930
Rented trading properties1 –170 –68
Losses on receivables from trading
properties1
0 –5
Total expense for rental
of properties –8,525 –6,004
Net rental income 48,253 46,620

1 Rental income or expenses from development properties.

The future rental income set out below will be generated from non-cancellable rental agreements for investment properties:

TCHF Commercial
properties
Residential
properties
30.06.2016
Total
Rental income
within 1 year
66,018 2,474 68,492
Rental income
within 2 to 5 years
170,286 7,309 177,596
Rental income in
over 5 years
181,062 4,846 185,907
Total future rental in
come from non-cancel
lable rental agreements
417,367 14,629 431,995
TCHF Commercial
properties
Residential
properties
31.12.2015
Total
Rental income
within 1 year
72,402 2,483 74,884
Rental income
within 2 to 5 years
184,121 5,734 189,855
Rental income in
over 5 years
175,990 3,741 179,731
Total future rental in
come from non-cancel
lable rental agreements
432,512 11,958 444,470

The five biggest tenants generate the following shares of rental income:

% 30.06.2016 31.12.2015
SV Group 6.3 6.1
Swisscom Group 5.3 5.1
Coop Group 3.1 3.1
Senevita AG 3.0 n/a
Migros Group 2.9 2.8
Total1 20.6 19.8

1 As at 30 June 2016, Senevita AG is now one of the five biggest tenants, which is why Rockwell Automation AG (as at 31 December 2015: 2.7%) no longer appears in the list.

6. Investment properties

Investment properties developed as follows:

Commercial Residential Development Investment
properties under
30.06.2016
TCHF properties properties properties construction Total
Market value as at 01.01.2016 1,357,011 760,117 142,470 153,170 2,412,768
Acquisition costs
As at 01.01.2016 1,189,840 632,180 161,599 153,867 2,137,486
Increases from investments 1,779 –2 4,757 23,643 30,177
Capitalisation of borrowing costs 0 0 117 767 884
Capitalisation / amortisation of lease incentives –438 0 0 0 –438
Disposals 0 –83,115 0 0 –83,115
Transfers to trading properties 0 0 0 –20,306 –20,306
Transfers between categories 0 0 –1,579 1,579 0
Cumulative acquisition costs as at 30.06.2016 1,191,180 549,062 164,894 159,551 2,064,688
Revaluation
Total as at 01.01.2016 167,171 127,937 –19,129 –697 275,282
Gains on valuations1 7,772 14,893 810 14,716 38,191
Losses on valuations1 –12,975 –1,016 –1,064 –2,272 –17,327
Disposals2 0 –35,445 0 0 –35,445
Transfers to trading properties 0 0 0 1,556 1,556
Transfers between categories 0 0 603 –603 0
Cumulative revaluation as at 30.06.2016 161,969 106,370 –18,780 12,699 262,257

1 Corresponds to the sum of "Gains from revaluation of investment properties" and "Losses on revaluation of investment properties" in the income statement and represents the unrealised gains on properties that were in the investment portfolio as at the end of the year under review.

2 Included as a realised gain in "Profit on disposal of investment properties" in the income statement.

No investment properties were acquired in the first half of 2016.

In the year under review, the following properties were sold:

Investment property Category of investment property
Zurich, Katzenbachstrasse 221 – 231 Residential property
Zurich, Manessestrasse 190/192; Residential property
Staffelstrasse 1/3/5

The sale of properties for a total of CHF 153.2 million produced a profit of about CHF 33.9 million.

The following properties are shown under transfers:

from to
Lausanne, Rue des Côtes-de-Montbenon 1/3/5
Development properties Investment properties
under construction
Zurich, Albulastrasse 42 (part of Zurich, Albula-/Hohlstrasse as at 31 December 2015)
Investment properties
under construction
Trading properties

The investment properties are valued by external, independent and certified real estate appraisers Wüest & Partner AG and Jones Lang LaSalle AG using the DCF method. Based on the real estate values as at 30 June 2016, 89% of the value was calculated by Wuest & Partner AG and 11% by Jones Lang LaSalle AG. For the DCF valuations as at 30 June 2016, the discount rates applied averaged 4.04% (as at 31December 2015: 4.08%), within a range from 3.0% to 5.8% (as at 31December 2015: 2.9% to 5.6%).

As at 30 June 2016, capital commitments for future construction investments in investment properties totalled CHF 133.8 million (31 December 2015: CHF 116.1 million). These commitments relate to the agreements concluded with general contractors/ planners for the investment properties under construction and development properties.

TRADING PROPERTIES AND DEVELOPMENT SERVICES

7. Profit on sale of trading properties and development services

Profit can be broken down as follows:

TCHF 30.06.2016 30.06.2015
Income from sale of trading
properties and development services
59,666 17,695
Construction costs of trading
properties sold and expenses from
development services
–42,351 –16,392
Changes in valuation allowances –330 0
Total expenses from sale
oftrading properties and
development services
–42,681 –16,392
Profit on sale of trading properties
and development services
16,985 1,303

In the first half of 2016, 23 apartments and the Mattenhof II building plot were transferred from Investments for Third Parties to the owner. In addition, income includes the proceeds from services under project development contracts where profits were realised in accordance with the percentage of completion (POC) method.

8. Trading properties

The recognised portfolio of properties comprises the following:

TCHF 30.06.2016 31.12.2015
Land / development projects
Properties under construction
30,933
104,399
42,181
88,101
Completed real estate and
development properties
98,364 96,281
Total trading properties 233,696 226,564

In the first half of 2016, ownership of the building plot of the development project at Mattenhof II in Kriens was transferred to the buyer. The development at Lucerne, Büttenenhalde, was also completed during the first half of 2016 and 16 of the 21 apartments were sold. Among completed properties, two apartments in Zurich, Badenerstrasse, four apartments in Regensdorf, Im Pfand, and one apartment in Zurich, Turbinenstrasse (Mobimo Tower), were sold.

FINANCING

9. Financial liabilities

The financial liabilities can be broken down as follows:

TCHF 30.06.2016 31.12.2015
Fixed-rate mortgage amortisation due within 12 months 10,355 10,313
Mortgages due for extension or repayment within 12 months 69,439 14,090
Total current financial liabilities 79,795 24,403
Mortgages 766,966 829,801
Bonds 512,705 512,453
Total non-current financial liabilities 1,279,671 1,342,254
Total financial liabilities 1,359,465 1,366,657
Interest rate swaps applying hedge accounting 45,560 29,000
Interest rate swaps through P & L 11,627 9,997
Total non-current derivative financial instruments 57,187 38,998

All financial liabilities are denominated in Swiss francs.

The following bonds are included under non-current financial liabilities:

TCHF 1.5% bond (2013 – 2018) 1.625% bond (2014 – 2021) 1.875% bond (2014 – 2024) Total
Net proceeds from issuance 164,158 197,967 149,452 511,577
Cumulative amortisation of issuance costs 357 452 67 876
Carrying amount 01.01.2016 164,515 198,419 149,519 512,453
Amortisation of issuance costs 84 142 26 252
Carrying amount 30.06.2016 164,599 198,561 149,545 512,705
Features 1.5% bond (2013 – 2018) 1.625% bond (2014 – 2021) 1.875% bond (2014 – 2024)
Volume: CHF 165 million CHF 200 million CHF 150 million
Term: 5 years (29.10.2013 – 29.10.2018) 7 years (19.05.2014 – 19.05.2021) 10 years (16.09.2014 – 16.09.2024)
Interest rate: 1.5% p.a.,
payable annually on 29.10., with the
first payment on 29.10.2014
1.625% p.a.,
payable annually on 19.05., with the
first payment on 19.05.2015
1.875% p.a.,
payable annually on 16.09., with the
first payment on 16.09.2015
Effective rate
of interest:
1.6070% 1.7921% 1.9264%
Listing: SIX Swiss Exchange SIX Swiss Exchange SIX Swiss Exchange
Swiss security no.: 22492349 24298406 25237980

Mobimo has concluded separate interest rate swaps with a contract volume of CHF 195.2 million (31 December 2015: CHF 195.2 million). These are used to hedge loans in the form of fixed advances (terms of three to six months) against rising interest rates.

Of these, CHF 118.9 million (31December 2015: CHF 128.9 million) are classified as cash flow hedges. The fair value of these financial instruments with a negative replacement value totals CHF 45.6 million (31December 2015: CHF 29.0 million). As at 30 June 2016, the hedge using an interest rate swap of CHF 10 million was no longer effective and is therefore now being managed as an interest rate swap without the application of hedge accounting. The change in value of the interest rate swap that continues to be classified as a cash flow hedge is divided into an effective and an ineffective portion.

The effective portion of the fair value adjustments of CHF 19.2 million (31December 2015: CHF 6.0 million) was recognised as an unrealised loss under other comprehensive income. Ineffectiveness totalling CHF –1.3 million (31 December 2015: CHF 0.9 million) was credited to financial expense in the income statement.

In addition, interest rate hedges totalling CHF 76.3 million (31December 2015: CHF 66.3 million) are not classified as cash flow hedges. The fair value of interest rate swaps with a negative replacement value not held for hedge accounting purposes is CHF 11.6 million (31December 2015: CHF 10.0 million). Fair value adjustments of CHF 0.3 million (net) were recognised under financial expense through profit or loss. As at 30 June 2016, the fair value of all derivatives totalled CHF 57.2 million (31December 2015: CHF 39.0 million).

Financial liabilities as at the reporting date comprised the following maturities, taking into account interest rate hedging, i.e. the maturities of designated swaps are taken into account instead of the maturities of fixed advances:

TCHF 30.06.2016 31.12.2015
Due within 1st year 79,795 24,403
Due within 2nd year 15,287 75,064
Due within 3rd year 252,024 191,600
Due within 4th year 43,546 65,317
Due within 5th year 315,636 115,278
Due within 6th year 93,241 261,869
Due within 7th year 111,154 150,799
Due within 8th year 4,165 37,117
Due within 9th year 151,047 151,021
Due within 10th year 8,815 1,502
Due within 11th year and longer 284,756 292,687
Total financial liabilities 1,359,465 1,366,657

The average residual maturity of total financial liabilities as at 30 June 2016 was 7.3 years (31 December 2015: 7.7 years).

Interest rate periods are as follows (composition until next interest rate adjustment):

TCHF 30.06.2016 31.12.2015
Up to 1 year 79,795 24,403
Up to 2 years 15,287 75,064
Up to 3 years 252,024 191,600
Up to 4 years 43,546 65,317
Up to 5 years 315,636 115,278
Over 5 years 653,178 894,995
Total financial liabilities 1,359,465 1,366,657

The average rate of interest applied to all financial liabilities in the first half of 2016 was 2.39% (full-year 2015: 2.46%)

10. Financial instruments

Fair values

The carrying amounts in the annual financial statements for cash, trade receivables, other current receivables and current liabilities are very close to the fair values given the short terms involved.

For interest rate swaps, fair value is the present value of the forward contract and corresponds to the carrying amount.

For fixed-rate financial liabilities, fair value corresponds to the time value of the future cash flows to be discounted as at the reporting date using the market interest rate. Rates of interest for discounting future cash flows are based on money and capital market rates as at the time of valuation plus an adequate interest spread of 0.80%. The discount rates applied as at 30 June 2016 were between –0.07% and 0.96% (as at 31 December 2015: between 0.10% and 1.70%). The fair value of the listed bonds corresponded to the price as at the reporting date.

Fair value hierarchy

The table below shows financial instruments carried at fair value, by measurement method, as at the reporting date. The different levels have been defined as follows:

  • Level 1: inputs that result from unadjusted, quoted prices
  • Level 2: inputs other than quoted prices in active markets that are observable either directly (i.e. prices) or indirectly (i.e. derived from prices)
  • Level 3: inputs not based on observable market data
30.06.2016 Level 1 Level 2 Level 3
Derivative financial instruments 0 57,187 0
31.12.2015 Level 1 Level 2 Level 3
Derivative financial instruments 0 38,998 0

Level 2 fair values for derivative financial instruments are based on valuations by the counterparty (banks). The plausibility of these counterparty valuations is checked by comparing them with calculations in which the expected future cash flows are discounted using the market interest rate.

11. Equity

The Annual General Meeting of 29 March 2016 approved a distribution from the capital contribution reserves of CHF 10.00 per share for the 2015 financial year, which was paid on 5 April 2016. The nominal value of Mobimo shares remains at CHF 29.00.

As at 30 June 2016, share capital amounted to CHF 180.3 million and was composed of 6,218,170 registered shares with a nominal value of CHF 29.00 each. 2,844 treasury shares were held as at 30 June 2016.

Changes in the equity holding can be summarised as follows:

Shares out
No. of shares Shares issued Treasury shares standing
As at 01.01.2015 6,216,606 –1,623 6,214,983
Issue of shares from
conditional capital for
options exercised 1,564 1,564
Share-based payments
to Board of Directors and
management 1,576 1,576
Acquisition of
treasury shares –1,200 –1,200
As at 31.12.2015/
01.01.2016 6,218,170 –1,247 6,216,923
Share-based payments
to Board of Directors and
management 5,403 5,403
Acquisition of
treasury shares –7,000 –7,000
As at 30.06.2016 6,218,170 –2,844 6,215,326

Authorised share capital is also available, allowing the Board of Directors to increase the share capital of the company by a maximum of CHF 34.8 million within two years (up to March 2018) at most via the issue of up to 1,200,000 registered shares, to be fully paid up, with a nominal value of CHF 29.00 per share.

There is also conditional share capital of a maximum of CHF 0.9 million for the issue of up to 32,446 fully paid up registered shares with a nominal value of CHF 29.00 for the subscription rights created after 5 May 2010 under an employee share option programme. Shareholders' subscription rights are excluded.

OTHER NOTES / OTHER FINANCIAL INFORMATION

12. Income taxes

On 20 March 2016, the electorate in the Canton of Vaud voted in a referendum in favour of the canton's new tax law, whose provisions include a substantial reduction in the canton's corporate tax rate. Consequently, the new lower tax rates are to already be applied for the calculation of deferred taxes for temporary differences realised only after 1 January 2019. This gives rise to a non-recurring positive effect of CHF 21.5 million in deferred tax liabilities, in particular on the differences in values of investment properties. The new law provides for the canton's governing council to propose measures to the canton's legislative body should expected amendments be delayed at federal level.

13. Earnings per share /net asset value

Earnings per share are calculated by dividing the Group result attributable to the shareholders of Mobimo Holding AG by the weighted average of the number of shares outstanding during the reporting period. Diluted earnings per share additionally take account of any shares arising from the exercise of options and the conversion of convertible bonds into shares. There were no dilutive effects in the reporting period.

The net asset value (NAV) was CHF 1,267.3 million (31December 2015: CHF 1,258.6 million), while the NAV per share came to CHF 203.89 (31December 2015: CHF 202.45). The NAV corresponds to the equity attributable to Mobimo shareholders in accordance with IFRS. As neither convertible bonds nor options were outstanding on the reporting date and there were thus no dilutive effects, the diluted NAV and diluted NAV per share correspond to the NAV and NAV per share.

14. Business combinations / changes in the scope of consolidation

On 5 April 2016, Mobimo Holding AG acquired the remaining 50% of the capital and voting rights of FM Service &Dienstleistungs AG. This acquisition was carried out at the value of the pro-rata share of equity on the date of the takeover (CHF 0.28 million); in other words, CHF 0.14 million. As at this date, the company is fully consolidated and included in the Real Estate division. The purpose of the company is to provide services in the real estate area, in particular in facility management. The company has to date provided facility management and central services for the tenants of the property at Zurich, Friesenbergstrasse; im Tiergarten 7. Based on its intention to extend these services to other Mobimo properties, Mobimo consequently decided to acquire the remaining shares of the joint venture partner.

In the first half of 2016, Mobimo acquired additional shares in Dual Real Estate Investment SA (Dual Group), thereby increasing its ownership interest to 99.7% (31 December 2015: 99.5%) as at 30 June 2016. Following the share's delisting, its last trading day on the Berne eXchange was 11 March 2016.

As part of restructuring within the companies covered under the scope of consolidation, the company ProviHold SA, Lausanne was merged into LO immeubles S.A., Lausanne.

15. Events after the reporting date

The consolidated interim financial statements were approved for publication by the Board of Directors on 28 July 2016.

On 6 July 2016, ownership of the property at Langenthal, Kühlhausstrasse was transferred from Investments for Third Parties to the buyer.

On 1 July 2016, the purchase of 66% of the shares of BSS &M Real Estate AG was completed. The purpose of the company is to develop, plan and realise real estate projects for both its own account and for third parties and to provide additional related services. The basic purchase price is CHF 12.8 million, while there are further conditional purchase price elements totalling a maximum of CHF 5.1 million. The basic purchase price will be paid in cash upon the closing of the transaction. According to the figures for the 2015 financial year prepared in accordance with commercial law, BSS &M Real Estate AG generated revenue of CHF 8.3 million. With its acquisition of BSS &M Real Estate AG, Mobimo is acquiring in particular ongoing projects under Investments for Third Parties and sale of condominiums.

No other events took place between 30 June 2016 and the approval date of these consolidated interim financial statements that would require adjustments to the carrying amounts of assets and liabilities as at 30 June 2016 or would require disclosure in this section.

Half-Year Report 2016 35

PROPERTY DETAILS

Trading property details

Location Address Site
area in m2
Register of
polluted
sites
Built Acquired
Land and development projects
Langenthal Kühlhausstrasse 8 13,080 yes (insignificant) Sep 2015
Merlischachen Chappelmatt Strasse (Burgmatt) 15,507 no 2014/2015
Weggis Hertensteinstrasse 105 3,043 no May 2010
Zurich Allmendstrasse 92 – 96 (Manegg)3 11,247 yes (insignificant) March 2015
42,877
Properties under construction
Aarau Site 4 (Torfeld Süd) 11,105 no June 2001
Langenthal Kühlhausstrasse3 2,284 no March 2014
Zurich Albulastrasse 423 1,938 no April 2010
15,327
Completed real estate and development properties
Aarau Buchserstrasse 8 241 no 1907 March 2011
Allaman Chemin des Grangettes 22 23,213 no 1991 Sep 2015
Lucerne Büttenenhalde 7,115 no Dec 2011
Meilen Feldgüetliweg 143/145 2,687 no Nov 2011
Regensdorf Im Pfand 2 (Sonnenhof) 6,106 no June 2007
St. Erhard Längmatt 5,801 no 1979 Oct 2012
St. Moritz Via Maistra 292 557 no 1930 July 2010
Zurich Badenerstrasse 595 (Station 595) 2,389 no 1954 May 2012
Zurich Turbinenstrasse trading property
(Mobimo Tower)
1,936 no May 2008
50,045

1 Status: certified purchase agreement.

2 Development properties.

3 Sale as project.

Carrying amount
30.06.2016
in TCHF
Realisation
period
Project status
30.06.2016
Sales volumes
in TCHF
Description
366 open in planning open open
15,982 open in planning open 78 condominiums
10,463 open in planning open open
4,123 open in planning open open
30,933
52,997 2014/2017 construction project 84,685 92 condominiums
29,049 2014/2016 construction project open office building
22,353 2016/2017 construction project open residential building
104,399 84,685
470 open for sale open residential property
24,522 open in planning open open
9,297 2014/2016 for sale 30,278 24 condominiums
13,272 2013/2015 for sale 27,820 14 condominiums
1,163 2013/2015 for sale 34,285 45 condominiums
7,071 open for sale open commercial building
16,758 open in planning open open
1,540 2013/2014 for sale 52,644 60 condominiums
for sale 170,043 53 condominiums
24,270 2008 / 2011
Location Address Acquired Built Year
renovated
Aarau Bahnhofstrasse 102 (Mediapark) March 2004 1975 1998
Aarau Industriestrasse 28; Torfeldstrasse Parkhaus June 2001/Oct 2006
Aarau Industriestrasse 20 (Polygon) June 2001 2012
Affoltern am Albis Obstgartenstrasse 9, Alte Oberfeldstrasse 27/29 Aug 2011 2013
Basel Lyon Strasse 40 Nov 2015 1940
Brugg Bahnhofstrasse 11 June 2006 2005
Dierikon Pilatusstrasse 2 May 2009 1990 2007
Dübendorf Sonnentalstrasse 5 March/Dec 1999 1975 2000
Dübendorf Zürichstrasse 98 Jan 2000 1965 1983
Geneva Rue des Etuves 16 – 18 Nov 2015 1910
Horgen Seestrasse 80 Nov 2005 1960 2000/2008
Horgen Seestrasse 82 Nov 2005 2010/2011
Kreuzlingen Lengwilerstrasse 2 April 2007 2007
Kreuzlingen Leubernstrasse 3; Bottighoferstrasse 1 Nov 2006 1983/2003 2003
Kreuzlingen Romanshornerstrasse 126 Nov 2006 n / a
Kriens Sternmatt 6 Feb 2004 1986 2008
Lausanne Avenue d'Ouchy 4 – 6 (Horizon) May 2010 2013 2013
Lausanne Flonplex Nov 2009 n / a
Lausanne Parking du Centre Nov 2009 n / a
Lausanne Place de la Gare 4 Nov 2009 1961 2000
Lausanne Place de la Navigation 4 – 6 Nov 2009 1895 2002
Lausanne Place de l'Europe 6 Nov 2009 1905 2012
Lausanne Place de l'Europe 7 Nov 2009 1905 2001
Lausanne Place de l'Europe 8 Nov 2009 1911 1989
Lausanne Place de l'Europe 9 Nov 2009 1900 2002
Lausanne Rue de Genève 2/4/6/8 Nov 2009 1904 2002
Lausanne Rue de Genève 7 Nov 2009 1932 1992/2011
Lausanne Rue de Genève 17 Nov 2009 1884 2002
Lausanne Rue de Genève 23 Nov 2009 1915 2005
Lausanne Rue de la Vigie 3 Nov 2009 1964
Lausanne Rue de la Vigie 5 Nov 2009 1963 1988
Lausanne Rue des Côtes-de-Montbenon 6 Nov 2009 1921 2009
Lausanne Rue des Côtes-de-Montbenon 8/10 Nov 2009 1946 1998
Lausanne Rue des Côtes-de-Montbenon 12 Nov 2009 1918 2004
Lausanne Rue des Côtes-de-Montbenon 16 Nov 2009 1912 2007
Lausanne Rue des Côtes-de-Montbenon 20 – 24 Nov 2009 2013
Lausanne Rue des Côtes-de-Montbenon 26 Nov 2009 n / a
Lausanne Rue des Côtes-de-Montbenon 28/30 Nov 2009 n / a
Lausanne Rue du Port-Franc 9 Nov 2009 1927 2009
Lausanne Rue du Port-Franc 11 Nov 2009 2008
Lausanne Rue du Port-Franc 17 Nov 2009 2002
Lausanne Rue du Port-Franc 22; Rue de la Vigie 1 Nov 2009 2007
Lausanne Voie du Chariot 3 Nov 2009 2008
Lausanne Voie du Chariot 4/6 Nov 2009 2008
Lausanne Voie du Chariot 5/7 Nov 2009 2008

1 Target rental income as at reporting date 30.06.2016 as % of market value.

2 Vacancy rate as % of target rental income.

Year
renovated
Fair value
in TCHF
Acquisition costs
in TCHF
Gross yield
in %1
Target rental revenues
in TCHF
Vacancy rate as at
30.06.2016 in %2
Vacant area as at
30.06.2016 in %
1998 22,960 9.3 2,141 45.0 40.3
27,743 6.7 1,857 0.0 0.0
24,330 5.2 1,263 0.0 0.0
73,950 4.5 3,302 0.0 0.0
860 7.9 68 0.0 0.0
27,320 5.5 1,516 5.1 3.2
2007 10,210 7.4 753 0.9 0.7
2000 25,640 6.9 1,760 21.9 20.7
1983 20,980 6.9 1,438 6.3 5.0
11,370 5.3 607 48.1 28.2
2000/2008 7,650 6.8 517 0.2 0.0
5,888 4.6 268 8.4 0.0
6,300 5.1 322 0.0 0.0
2003 61,152 5.9 3,622 1.1 1.5
0.0
2008 1,886 4.3 80 0.0 4.0
25,190 9.4 2,362 3.3
2013 65,700 4.9 3,249 0.0 0.0
0.0
4,748 4.4 210 0.0
8,476 5.4 457 0.0
2000 27,760 5.4 1,502 0.0
2002
2012
13,410 5.0 676 0.0
6,017 5.0 303 0.0
2001
1989
8,463 5.4 456 0.0 22.9
8,298 5.1 423 33.5
23,610 5.3 1,250 0.0
21,920 6.0 1,308 0.0
1992/2011
2002
31,760 5.2 1,639 0.0
21,720 5.4 1,167 0.2
2005 3,384 5.4 182 0.0
6,874 7.6 521 47.4
14,010
7,885
6.1
4.6
860
359
0.0
0.0
8,975 5.9 531 0.0
3,820 8.2 314 0.0
2004
2007
5,703 5.3 304 0.0
41,160 5.3 2,197 0.0
1,883 4.2 79 0.0
2,169 3.4 74 0.0
2009 6,885 5.0 342 0.0
12,590 5.8 734 20.3 23.3
12,200 6.0 730 0.0
18,620 6.7 1,244 14.0 15.3
15,320 5.5 845 1.1
30,120 6.2 1,863 0.0
33,200 5.0 1,658 0.0
63 Commercial investment properties
Zurich Turbinenstrasse 18 (Mobimo Tower Hotel) May 2008 2011
Zurich Treichlerstrasse 10; Dolderstrasse 16 May 2014 1963 2007
Zurich Thurgauerstrasse 23; Siewerdtstrasse 25 March 2002 1963/1968/1985 1998
Zurich Stauffacherstrasse 41 June 2000 1990 2011
Zurich Rautistrasse 12 Nov 1999 1972 2011
Zurich Hardturmstrasse 3/3a/3b (Mobimo-Hochhaus) Nov 1999 1974 2001/2008
Zurich Friesenbergstrasse 75; Im Tiergarten 7 Feb 2014 1976/1992 1999
Zurich Friedaustrasse 17 Oct 1998 1968 2013
Zurich Bahnhofplatz 4 July 2006 1881 2002/2005
Winterthur Industriestrasse 26 Oct 1999 1994 2002
St. Gallen Wassergasse 50/52 Feb 2004 1998
St. Gallen Wassergasse 42/44 Feb 2004 1966 2000
St. Gallen St. Leonhardstrasse 22 Dec 2004 1900 2002/2006
St. Gallen Schochengasse 6 Feb 2004 1974 2000
Renens Chemin de la Rueyre 116/118 March 2007 1989
Regensdorf Althardstrasse 10 Dec 2001 1982
Neuhausen Victor von Bruns-Strasse 19 March 2007 2007
Lucerne Alpenstrasse 9 June 2007 1890 2001/2010
renovated
Location Address Acquired Built Year
Mattenhof I March 2005/ Feb 2013 n / a
Avenue d'Ouchy 4 – 6 May 2010 1962
Rue de Genève 19 Nov 2009 1893 2,002
Rue de Genève 21 Nov 2009 1902
Rue des Côtes-de-Montbenon 14 Nov 2009 1963
Rue du Port-Franc 20; Rue de Genève 33 Nov 2009 2007
Althardstrasse 30 Dec 2001 1976

7 Development properties (commercial properties) 146,114 164,894 5.9 8,614 37.5 40.4

1 Target rental income as at reporting date 30.06.2016 as % of market value.

2 Vacancy rate as % of target rental income.

Vacancy rate as at Target rental revenues Gross yield Acquisition costs Fair value
in TCHF
12,490
10,630
18,650
11,860
17,360
5,220
15,110
13,370
19,140
21,190
13,230
90,310
59,060
20,000
49,460
14,360
15,160
126,440
1,353,149
0.0 - 0.0 24,200
25.5 3,346 5.5 60,370
21.4 424 12.0 3,541
24.7 341 10.0 3,420
0.0 36 2.6 1,393
29.1 2,764 7.0 39,490
81.9 1,703 12.4 13,700
37.5 8,614 5.9 164,894 146,114
30.06.2016 in %2
0.0
35.4
25.0
1.0
0.4
0.0
7.0
0.0
11.5
0.0
1.2
9.6
0.0
7.3
0.0
0.9
4.2
0.0
5.5
in TCHF
566
709
1,849
866
1,110
271
983
829
1,497
918
693
5,917
3,225
1,391
2,395
970
893
6,951
79,384
in %1
4.5
6.7
9.9
7.3
6.4
5.2
6.5
6.2
7.8
4.3
5.2
6.6
5.5
7.0
4.8
6.8
5.9
5.5
5.9
in TCHF
1,191,180
Location Address Ownership Site area in m2 Register of
polluted sites
Aarau Bahnhofstrasse 102 (Mediapark) sole ownership 5,675 no
Aarau Industriestrasse 28; Torfeldstrasse Parkhaus sole ownership 13,727 yes (insignificant)
Aarau Industriestrasse 20 (Polygon) sole ownership 3,840 yes (Code D)3
Affoltern am Albis Obstgartenstrasse 9, Alte Oberfeldstrasse 27/29 sole ownership 6,455 no
Basel Lyon Strasse 40 sole ownership 1,910 no
Brugg Bahnhofstrasse 11 condo (773/1000) 2,726 no
Dierikon Pilatusstrasse 2 sole ownership 4,397 no
Dübendorf Sonnentalstrasse 5 condo (930/1000) 4,368 yes (code D)3
Dübendorf Zürichstrasse 98 sole ownership 9,809 yes (petrol station)
Geneva Rue des Etuves 16 – 18 sole ownership 484 no
Horgen Seestrasse 80 sole ownership 3,483 no
Horgen Seestrasse 82 sole ownership 0 no
Kreuzlingen Lengwilerstrasse 2 sole ownership 6,993 no
Kreuzlingen Leubernstrasse 3; Bottighoferstrasse 1 sole ownership 25,530 no
Kreuzlingen Romanshornerstrasse 126 sole ownership 2,214 no
Kriens Sternmatt 6 sole ownership 14,323 no
Lausanne Avenue d'Ouchy 4 – 6 (Horizon) sole ownership 12,609 yes7
Lausanne Flonplex sole ownership 1,953 yes8
Lausanne Parking du Centre sole ownership 5,065 yes8
Lausanne Place de la Gare 4 sole ownership 630 no
Lausanne Place de la Navigation 4 – 6 sole ownership 2,037 yes4
Lausanne Place de l'Europe 6 sole ownership 369 yes4
Lausanne Place de l'Europe 7 sole ownership 391 yes4
Lausanne Place de l'Europe 8 sole ownership 1,035 yes4
Lausanne Place de l'Europe 9 sole ownership 975 yes4
Lausanne Rue de Genève 2/4/6/8 sole ownership 2,260 yes4
Lausanne Rue de Genève 7 sole ownership 3,343 yes4
Lausanne Rue de Genève 17 sole ownership 2,312 yes4
Lausanne Rue de Genève 23 sole ownership 2,524 yes6
Lausanne Rue de la Vigie 3 sole ownership 972 yes7
Lausanne Rue de la Vigie 5 sole ownership 852 yes7
Lausanne Rue des Côtes-de-Montbenon 6 sole ownership 533 yes7
Lausanne Rue des Côtes-de-Montbenon 8/10 sole ownership 587 yes4
Lausanne Rue des Côtes-de-Montbenon 12 sole ownership 499 yes7
Lausanne Rue des Côtes-de-Montbenon 16 sole ownership 850 yes4
Lausanne Rue des Côtes-de-Montbenon 20 – 24 sole ownership 3,520 yes
Lausanne Rue des Côtes-de-Montbenon 26 sole ownership 867 yes8
Lausanne Rue des Côtes-de-Montbenon 28/30 sole ownership 1,068 yes7
Lausanne Rue du Port-Franc 9 sole ownership 2,733 yes6
Lausanne Rue du Port-Franc 11 sole ownership 612 yes5
Lausanne Rue du Port-Franc 17 sole ownership 776 yes5
Lausanne Rue du Port-Franc 22; Rue de la Vigie 1 sole ownership 1,999 yes5
Lausanne Voie du Chariot 3 sole ownership 500 yes5
Lausanne Voie du Chariot 4/6 sole ownership 2,614 yes5
Lausanne Voie du Chariot 5/7 sole ownership 1,042 yes5

3 Code D: clarification necessary in the context of building projects.

4 Site pollution unlikely – the property must be maintained in accordance with the design plan ("Gestaltungsplan") and has been subject to comprehensive renovation in recent years.

5 Site pollution eliminated – property rebuilt in recent years.

6 Site pollution suspected but no measures expected – the property must be maintained in accordance with the design plan ("Gestaltungsplan").

Property
description9
Total rentable
area in m2
Office space
in %
Sales space
in %
Commercial space
in %
Residential
space in %
Other
in %
com 13,484 64.0 0.0 8.6 1.4 26.0
com 24,267 0.0 0.0 100.0 0.0 0.0
com 4,465 91.4 0.0 0.0 0.0 8.6
com 10,625 0.0 0.0 0.0 93.0 7.0
com 2,230 0.0 0.0 59.2 0.0 40.8
com 4,023 33.4 33.8 21.1 0.0 11.7
com 4,387 60.4 15.8 15.1 0.0 8.7
com 8,792 18.0 0.0 71.0 0.0 11.0
com 9,847 29.7 17.4 26.1 1.1 25.7
com + res 1,925 15.9 18.0 0.0 66.1 0.0
com 2,151 76.2 0.0 19.0 0.0 4.8
car park 64 0.0 0.0 0.0 0.0 100.0
com
com
1,348
17,819
0.0
8.7
66.5
89.5
0.0
0.0
0.0
0.0
33.5
1.8
building right 0 0.0 0.0 0.0 0.0 0.0
com 20,934 32.1 4.7 42.4 1.2 19.6
com 8,072 96.6 0.0 0.0 0.0
building right 1,953 0.0 0.0 0.0 0.0 100.0
building right 6,526 0.0 0.0 0.0 0.0 100.0
com 4,769 68.5 0.0 0.0 0.0
com - hotel 3,437 0.0 0.0 0.0 0.0
com - hotel 902 0.0 0.0 0.0 0.0
com 1,440 66.8 7.9 0.0 0.0
com 1,679 78.1 21.9 0.0 0.0
com 3,512 49.5 36.2 0.0 0.0
com 4,679 8.6 87.4 0.0 0.0
com -share 5,296 12.3 26.3 0.0 20.8
investment prop.
com 7,168 47.6 21.3 3.0 0.0
com 2,322 0.0 100.0 0.0 0.0
com 3,172 60.7 0.0 2.0 0.0
com
com
3,361
2,193
64.4
62.5
0.0
19.7
5.6
0.0
0.0
0.0
com 2,126 76.3 0.0 0.0 0.0
com 935 44.4 0.0 0.0 0.0
com 943 61.8 0.0 0.0 29.8
com 7,370 0.8 2.8 0.0 0.0
building right 867 0.0 0.0 0.0 0.0
building right 1,068 0.0 0.0 0.0 0.0 100.0
com 1,728 20.9 21.7 0.0 0.0
com 2,001 41.2 8.2 0.0 0.0
com 2,132 57.8 0.0 0.0 25.0
com 3,806 68.4 0.0 0.0 0.0
com 2,278 73.4 17.3 0.0 0.0
com 5,452 32.3 64.9 0.0 0.0
com 4,944 54.9 15.5 0.0 15.6

7 Site pollution suspected - measures required in new-build projects.

8 Building-right plots on which new-build projects have been completed in recent years.

9 Com = commercial; Res = residential.

Location Address Ownership Site area in m2 Register of
polluted sites
Lucerne Alpenstrasse 9 sole ownership 569 no
Neuhausen Victor von Bruns-Strasse 19 sole ownership 1,596 no
Regensdorf Althardstrasse 10 sole ownership 7,714 no
Renens Chemin de la Rueyre 116/118 sole ownership 4,503 no
St. Gallen Schochengasse 6 sole ownership 1,316 no
St. Gallen St. Leonhardstrasse 22 sole ownership 219 no
St. Gallen Wassergasse 42/44 condo (867/1000) 1,714 no
St. Gallen Wassergasse 50/52 sole ownership 1,373 no
Winterthur Industriestrasse 26 sole ownership 3,635 yes (code D)3
Zurich Bahnhofplatz 4 sole ownership 189 yes
Zurich Friedaustrasse 17 sole ownership 869 no
Zurich Friesenbergstrasse 75; Im Tiergarten 7 sole ownership 11,532 no
Zurich Hardturmstrasse 3/3a/3b (Mobimo-Hochhaus) sole ownership 1,975 yes
Zurich Rautistrasse 12 sole ownership 1,894 yes (petrol station)
Zurich Stauffacherstrasse 41 sole ownership 1,405 no
Zurich Thurgauerstrasse 23; Siewerdtstrasse 25 sole ownership 2,657 no
Zurich Treichlerstrasse 10; Dolderstrasse 16 sole ownership 1,139 no
Zurich Turbinenstrasse 18 (Mobimo Tower Hotel) sole ownership 5,808 no
63 Commercial investment properties 211,568
Kriens Mattenhof I sole ownership 15,792 no
Kriens Mattenhof I sole ownership 15,792 no
Lausanne Avenue d'Ouchy 4 – 6 sole ownership 0 yes7
Lausanne Rue de Genève 19 sole ownership 2,733 yes6
Lausanne Rue de Genève 21 sole ownership 2,524 yes6
Lausanne Rue des Côtes-de-Montbenon 14 sole ownership 647 yes7
Lausanne Rue du Port-Franc 20; Rue de Genève 33 sole ownership 2,000 yes5
Regensdorf Althardstrasse 30 sole ownership 9,355 no

7 Development properties (commercial properties) 33,051 49,108 35.7 24.4 19.8 0.6 19.5

³ Code D: clarification necessary in the context of building projects.

⁵ Site pollution eliminated – property rebuilt in recent years.

⁶ Site pollution suspected but no measures expected - the property must be maintained in accordance with the design plan ("Gestaltungsplan").

⁷ Site pollution suspected – measures required in new-build projects.

⁹ Com = commercial; Res = residential.

Register of
Property
Total rentable Office space Sales space Commercial space Residential Other
polluted sites
description9
area in m2 in % in % in % space in % in %
no
res+com
1986 12.6 13.1 0.0 64.6 9.7
no
com
2,806 93.8 0.0 0.0 0.0 6.2
no
com
13,532 39.2 28.6 7.5 0.0 24.7
no
com
4,341 68.8 0.0 0.0 0.0 31.2
no
com
4,460 95.4 0.0 0.0 0.0 4.6
com 1,092 79.1 12.7 0.0 0.0 8.2
no
com
3,958 80.4 0.0 0.0 9.4 10.2
com 3,554 72.3 0.0 0.0 0.0 27.7
yes (code D)3
com
11,327 64.6 0.8 20.4 0.0 14.2
yes
com
758 63.5 27.8 0.0 0.0
com 2,595 56.7 0.0 11.9 10.1
com 22,819 75.2 0.0 0.0 0.0
yes
com
8,226 94.4 0.0 0.0 0.0
yes (petrol station)
com
6,013 74.3 9.4 6.6 1.3
com 6,755 60.6 1.0 0.0 0.0
com 3,901 59.1 6.8 6.9 0.0
com 2,682 34.1 0.0 33.3 7.1
com - hotel 22,428 0.0 0.0 0.0 0.0 100.0
345,725 40.0 12.8 15.0 4.8 27.4
no
land
0 0.0 0.0 0.0 0.0
yes7
com
18,844 24.5 20.8 41.7 0.0 13.0
yes6
com
3,548 39.4 17.2 0.0 0.0 43.4
yes6
com
3,575 40.0 16.9 0.0 0.0 43.1
com 640 0.0 100.0 0.0 0.0
com 9,964 34.1 62.2 0.0 0.0
com 12,537 53.6 0.0 14.7 2.3
no

Residential property details

Location Address Acquired Built Year
renovated
Affoltern am Albis Alte Obfelderstrasse 31 – 35 Aug 2011 2013
Bergdietikon Baltenschwilerstrasse 3/5/7/9/11/13/15/17 Oct 2007 1973/1980 1992/2007
Binz Zürichstrasse 244/246 Nov 2005 1966 1997/2001
Carouge Place d'Armes 8 Nov 2015 1932 2014
Carouge Rue de la Fontenette 13 Nov 2015 1973 2014
Geneva Boulevard Carl-Vogt 6 Nov 2015 1948
Geneva Boulevard de la Cluse 18 Nov 2015 1951
Geneva Rue Chandieu 5 Nov 2015 1976 2005
Geneva Rue Daubin 35 Nov 2015 1952 2012
Geneva Rue de la Cannonière 11 Nov 2015 1951 2005/2010/2011/2013
Geneva Rue de la Ferme 6 Nov 2015 1900 2008/2010/2012/2014
Geneva Rue de la Poterie 34 Nov 2015 1895 2012
Geneva Rue de l'Ecole-de-Médecine 3 Nov 2015 1900 2014
Geneva Rue de Malatrex 30 Nov 2015 1951 2012
Geneva Rue de Vermont 9 Nov 2015 1969 2014
Geneva Rue des Confessions 9 Nov 2015 1923 2013
Geneva Rue des Cordiers 5 Nov 2015 1965 2008
Geneva Rue des Peupliers 13 Nov 2015 1920 2010
Geneva Rue des Photographes 12 Nov 2015 1905 2013
Geneva Rue Dr-Alfred-Vincent 23 Nov 2015 1950 2010
Geneva Rue du 31 Décembre 35 Nov 2015 1956 2014
Geneva Rue du Village Suisse 4 Nov 2015 1900 2005
Geneva Rue Henri-Blanvalet 14 Nov 2015 1915 2012
Geneva Rue Schaub 3 Nov 2015 1960 2010
Geneva Rue Zurlinden 6 Nov 2015 1985 2012
Lausanne Avenue d'Ouchy 70 Nov 2009 1906 2004
Lausanne Avenue d'Ouchy 72/74 Nov 2009 1907
Lausanne Avenue d'Ouchy 76 Nov 2009 1907 2004
Lausanne Avenue Edouard Dapples 9/13/15/15a April 2013 1925/1926
Lausanne Place de la Navigation 2 Nov 2009 1895 2004
Lausanne Rue Beau-Séjour 8 Nov 2009 2011
Lausanne Rue des Fontenailles 1 Nov 2009 /April 2013 1910/1963 1993
Lausanne Rue Voltaire 2 – 12 Oct 2012 2015
Meyrin Rue de Livron 17 – 19 Nov 2015 1967 2010
Münchwilen Buchenacker 22/24/26/28; Unterer Buchenacker 7 June 2007 1994/1995
Onex Avenue des Grandes-Communes 21 – 23 – 25 Nov 2015 1964 2012/2014
Opfikon-Glattbrugg Farmanstrasse 47/49 Dec 2010 2009
Regensdorf Schulstrasse 95/97/99/101/103/105 June 2007 2015
Rheinfelden Rütteliweg 8; Spitalhalde 40 Sep 2006 1972 2004
St. Gallen Teufenerstrasse 15 Dec 2006 1900 2005
Versoix Chemin de l'Ancien Péage 2 – 4 Nov 2015 1963 2014
Wängi Brühlwiesenstrasse 11a/11b/15a/15b/19a/19b June 2007 1984/1988
Zurich Katzenbachstrasse 239 March 2008 1969

43 Residential investment properties 655,432 549,062 4.7 30,645 3.2 3.3

¹ Target rental income as at reporting date 30.06.2016 as % of market value.

² Vacancy rate as % of target rental income.

Fair value
in TCHF
Acquisition costs
in TCHF
Gross yield
in %1
Target rental revenues
in TCHF
Vacancy rate as at
30.06.2016 in %2
Vacant area as at
30.06.2016 in %
30,150 4.0 1,215 10.5 10.1
23,619 4.1 978 10.1 8.9
12,300 4.1 503 8.5 6.0
9,170 5.2 478 0.0 0.0
7,030 5.0 354 0.0
8,400 4.8 400 0.0
6,040 4.7 285 0.0
11,840 4.6 548 1.4
7,260 4.9 358 0.5
8,110 5.1 412 0.0
6,580 4.9 325 0.0
3,410 5.3 181 0.0
3,970 5.1 204 0.0
8,540 5.6 476 0.0
7,670 5.4 416 2.0
7,360
17,690
4.1
4.7
300
832
0.0
2.9
2,870 5.8 166 0.0
4,230 5.0 213 1.7
4,090 4.6 190 0.0
7,620 4.9 372 0.0
2,990 5.6 166 0.0
5,870 4.8 280 0.8
9,290 4.7 438 0.0
11,020 5.1 561 13.8
5,418 5.2 281 0.0
2,933 5.0 146 0.0
15,390 4.3 661 0.0
20,470 4.7 954 0.2
6,443 4.6 297 0.0
92,920 4.5 4,165 3.1
4,050 4.7 192 9.6
65,790 4.3 2,854 0.9
17,230 5.2 898 1.5
15,186
37,270
5.1
4.9
775
1,838
6.5
1.4
27,290 3.9 1,069 1.3
56,400 4.2 2,368 1.5
17,400 6.4 1,105 16.8
4,112 5.3 218 18.1
20,060 5.7 1,147 0.0
13,617 5.4 730 6.7
6,334 4.7 295 3.7
655,432 549,062 4.7 30,645 3.2

Residential property details

Address Ownership Site area in m2 Register of
polluted sites
Alte Obfelderstrasse 31 – 35 sole ownership 5174 no
Baltenschwilerstrasse 3/5/7/9/11/13/15/17 sole ownership 11,330 no
Zürichstrasse 244/246 sole ownership 4,025 no
no
no
no
no
no
no
no
no
no
no
no
no
no
no
no
no
no
no
no
no
no
Rue Zurlinden 6 sole ownership 437 no
Avenue d'Ouchy 70 sole ownership 2,037 yes4
Avenue d'Ouchy 72/74 easement 1,911 yes4
Avenue d'Ouchy 76 sole ownership 2,037 yes4
Avenue Edouard Dapples 9/13/15/15a sole ownership 5,246 no
Place de la Navigation 2 sole ownership 1,911 yes4
Rue Beau-Séjour 8 sole ownership 3,827 yes5
Rue des Fontenailles 1 sole ownership 853 no
Rue Voltaire 2-12 sole ownership 4,743 no
Rue de Livron 17 – 19 sole ownership 670 no
no
no
no
no
no
no
no
no
no
104,179
Place d'Armes 8
Rue de la Fontenette 13
Boulevard Carl-Vogt 6
Boulevard de la Cluse 18
Rue Chandieu 5
Rue Daubin 35
Rue de la Cannonière 11
Rue de la Ferme 6
Rue de la Poterie 34
Rue de l'Ecole-de-Médecine 3
Rue de Malatrex 30
Rue de Vermont 9
Rue des Confessions 9
Rue des Cordiers 5
Rue des Peupliers 13
Rue des Photographes 12
Rue Dr-Alfred-Vincent 23
Rue du 31 Décembre 35
Rue du Village Suisse 4
Rue Henri-Blanvalet 14
Rue Schaub 3
Buchenacker 22/24/26/28; Unterer Buchenacker 7
Avenue des Grandes-Communes 21 – 23 – 25
Farmanstrasse 47/49
Schulstrasse 95/97/99/101/103/105
Rütteliweg 8; Spitalhalde 40
Teufenerstrasse 15
Chemin de l'Ancien Péage 2 – 4
Brühlwiesenstrasse 11a/11b/15a/15b/19a/19b
Katzenbachstrasse 239
Residential investment properties
sole ownership
sole ownership
sole ownership
sole ownership
sole ownership
sole ownership
sole ownership
sole ownership
sole ownership
sole ownership
sole ownership
sole ownership
sole ownership
sole ownership
sole ownership
sole ownership
sole ownership
sole ownership
sole ownership
sole ownership
sole ownership
sole ownership
sole ownership
sole ownership
sole ownership
sole ownership
sole ownership
sole ownership
sole ownership
sole ownership
250
230
436
228
315
624
248
272
242
492
241
426
351
1157
147
188
234
290
145
260
439
5,740
930
3,840
16,656
14,817
658
722
7,413
1,987

4 Site pollution unlikely – the property must be maintained in accordance with the design plan ("Gestaltungsplan") and has been subject to comprehensive renovation in recent years.

5 Site pollution eliminated – property rebuilt in recent years.

Property Total 1 – 1 ½- 2 – 2 ½- 3 – 3 ½- 4 – 4 ½- 5 or more Total Other forms
description9 rentable room room room room room apartments of use in %
area in m2 apartments apartments apartments apartments apartments 0.8
res 4,706 0 1 15 26 0 42
res 5,226 0 8 18 28 0 54 6.0
res 2,580 0 6 12 12 0 30 4.5
res 1,308 0 19 8 0 0 27 8.4
res 1,188 1 6 7 3 6 23 0.0
res 2,080 0 0 6 6 6 18 46.6
0.0
res 855 0 14 5 2 0 21
res 2,010 0 0 12 12 2 26
res 1,043 1 20 0 7 0 28
res 1,145 1 14 12 1 0 28
res 857 21 4 0 0 0 25
res 701 2 7 4 2 0 15 0.0
res 800 0 0 6 4 0 10 31.3
32.1
res 1,289 20 10 0 0 0 30
res 1,153 9 0 0 5 4 18
res 1,316 0 3 15 5 0 23
res 2,786 0 0 2 22 3 27
res 513 0 2 3 4 1 10
res 685 0 3 4 1 1 9
res 707 0 0 8 6 1 15
res 1,395 0 18 0 6 0 24
res 511 0 3 5 2 1 11
res 841 0 0 6 4 4 14
res 1,857 0 0 14 12 1 27
res 1,609 0 3 4 8 0 15
res+com 1,122 0 0 5 1 4 10
res 995 0 6 3 3 0 12
res+com 2,536 0 0 0 1 9 10
res 4,959 0 1 2 28 17 48
res+com 1,313 0 2 0 2 4 8
res 10,288 0 19 55 16 11 101
res 1,071 1 0 0 4 4 9
res 8,663 1 21 41 21 8 92
res 3,972 0 0 12 24 12 48
res 4,367 0 4 20 20 0 44
res 6,570 0 0 54 53 0 107
res 3,609 1 13 16 9 0 39
8,716 0 16 50 30 0 96
res 5,588 8 30 0 46 0 84
res+com 1,596 1 2 1 7 0 11
res 4,495 0 20 0 34 16 70
res 4,439 0 6 21 21 0 48
res 1,589 0 5 8 5 0 18
115,049 67 286 454 503 115 1,425

9 Com = commercial; Res = residential.

Details of investment properties under construction

Location Address Ownership Acquired Built
Aarau Baufeld 2 (Torfeld Süd) sole ownership Oct 2006 1905/1916/1929/
1943/1954
Horgen Seestrasse 93 (Grob site) sole ownership Nov 2005 1956/2017
Kriens Sternmatt 6 – Block C (multi-storey parking) sole ownership Feb 2004 1986
Lausanne Rue des Côtes-de-Montbenon 1/3/5 sole ownership Nov 2009 1930
Zurich Hohlstrasse 485 sole ownership April 2010 1896/1928
Zurich Letzigraben 134 – 136 sole ownership Sep 2006 1958/1975/2016

6 Properties under construction 172,250 49,257 60,543

All of the above investment properties are in the construction phase. The properties at Zurich, Letzigraben 134 – 136 and Kriens, Sternmatt 6 – Block C (multi-storey parking) will be completed in the course of 2016. The properties at Horgen, Seestrasse 93 (Grob site), Lausanne, Rue des Côtes-de-Montbenon 1/3/5 and Zurich, Hohlstrasse are planned to be completed in 2017, while the realisation phase of the property Aarau, Site 2 (Torfeld Süd) will last until 2018.

Owner-occupied property details

Location Address Ownership Acquired Built
Aarau Buchserstrasse 27 sole ownership Oct 2006 1885
Küsnacht Seestrasse 59 sole ownership Sep 2002 2006
Lausanne Rue de Genève 7 sole ownership Nov 2009 1932
Lausanne Rue des Côtes-de-Montbenon 16 sole ownership Nov 2009 1912
4 Properties

Co-ownership details

Location Address Ownership Acquired Built
Lausanne Flonplex co-ownership 40% Nov 2009 2003
Lausanne Parking du Centre co-ownership 50% Nov 2009 2002
Lausanne Parking Saint-François co-ownership 26.5% Nov 2009 1959
3 Properties

4 Site pollution unlikely – the property must be maintained in accordance with the design plan ("Gestaltungsplan") and has been subject to comprehensive renovation in recent years.

5 Site pollution eliminated – property rebuilt in recent years.

7 Site pollution suspected – measures required in new-build projects.

9 Com = commercial; Res = residential.

Total rentable
area in m2
Description of
property9
Register of
polluted sites
Site area
in m2
Fair value
in TCHF
19,205 res+com yes (insignificant) 18,526 31,100
16,660 com yes 10,542 24,720
218 car park no 5,028 5,200
2,051 com yes7 1,830 3,780
15,432 res+com no 8,328 48,800
6,977 res yes 5,003 58,650
60,543 49,257 172,250
Total rentable
area in m2
Description of
property9
Register of
polluted sites
Site area
in m2
Carrying amount
in TCHF
Year renovated
261 own-use yes (insignificant) 1,155 651
2,046 com/own-use no 2,125 10,384
632 com-share own-use yes4 3,343 3,239 1992/2011
170 com-share own-use yes4 850 555 2007
3,109 7,473 14,829
Total rentable Description of Register of Site area Fair value
area in m2 property9 polluted sites in m2 in TCHF
5,256 multiplex cinema yes5 0 9,332
car park yes5 0 31,015
car park yes7 0 2,388
5,256 42,735

REVIEW REPORT TO THE BOARD OF DIRECTORS OF MOBIMO HOLDING AG, LUCERNE

Introduction

We have been engaged to review the accompanying consolidated statement of balance sheet of Mobimo Holding AG as at 30 June 2016 and the related consolidated statements of income, comprehensive income, changes in equity and cash flows for the six-month period then ended, and other explanatory notes (the consolidated interim financial statements) on pages 18 to 51. The Board of Directors is responsible for the preparation and fair presentation of these consolidated interim financial statements in accordance with International Accounting Standard 34 Interim Financial Reporting and article 17 of the Directive on Financial Reporting (Directive Financial Reporting, DFR) issued by the SIX Swiss Exchange. Our responsibility is to express a conclusion on these consolidated interim financial statements based on our review.

Scope of Review

We conducted our review in accordance with the International Standard on Review Engagements 2410, Review of Interim Financial Information Performed by the Independent Auditor of the Entity. A review of interim financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the accompanying consolidated interim financial statements do not give a true and fair view of the financial position of the entity as at 30 June 2016, and of its financial performance and its cash flows for the six-month period then ended in accordance with International Accounting Standard 34 Interim Financial Reporting and are not prepared, in all material respects, in accordance with International Accounting Standard 34 Interim Financial Reporting and article 17 of the Directive on Financial Reporting (Directive Financial Reporting, DFR) issued by the SIX Swiss Exchange.

KPMG AG

Licensed Licensed Audit Expert Audit Expert

Lucerne, 28 July 2016

Kurt Stocker Reto Kaufmann

Half-Year Report 2016 53

EPRA KEY PERFORMANCE MEASURES

The Mobimo Group reports its key performance and cost ratio measures in accordance with the Best Practices Recommendations of the EPRA Reporting and Accounting Committee. The European Public Real Estate Association is an association of leading European property companies and is a partner of the FTSE EPRA /NAREIT index family, which added the Mobimo Holding AG share as one of its components on 20 June 2011. The figures published elsewhere by Mobimo on NAV, net initial yield and vacancy rates may deviate

from the EPRA measures set out below, as Mobimo does not, for example, include the market value of trading properties, which are recognised at cost, and bases its calculations on effective rents. However, when calculating earnings per share Mobimo does take account of gains on the sale of trading and investment properties.

A EPRA Earnings & EPRA Earnings Per Share Unit HY 2016 HY 2015
Earnings as per IFRS income statement TCHF 89,454 35,560
(i) Changes in value of investment properties, development properties held
for investment and other interests
TCHF –20,864 –9,728
(ii) Profits or losses on disposal of investment properties, development properties held for
investment and other interests
TCHF –33,861 –15,809
(iii) Profit on sale of trading properties and development services adjusted TCHF –9,468 5,362
(iv) Tax on profits or losses on disposals TCHF 14,421 1,869
(v) Negative goodwill/ goodwill impairment TCHF n / a n / a
(vi) Changes in fair value of financial instruments and asscociated close-out costs TCHF –909 2,980
(vii) Acquisition costs on share deals and non-controlling joint venture interests TCHF n / a n / a
(viii) Deferred tax in respect of EPRA adjustments TCHF –16,686 1,485
(ix) Adjustments to positions (i) to (viii) in respect of joint ventures TCHF 0 0
(x) Non-controlling interests in respect of the above TCHF 352 116
EPRA Earnings
TCHF
22,438 21,835
Average number of shares outstanding 6,215,647 6,215,287
EPRA Earnings Per Share
CHF
3.61 3.51

Half-Year Report 2016 55

NAV as per consolidated financial statements TCHF 1,267,267 1,258,617
Effect of exercise of options, convertibles and other equity instruments TCHF 0 0
Diluted NAV after the exercise of options, convertibles and other equity instruments TCHF 1,267,267 1,258,617
Include
(i.a) Revaluation of investment properties (if IAS 40 cost model is used) TCHF n / a n / a
(i.b) Revaluation of investment property under construction (IPUC) (if IAS 40 cost model is used) TCHF n / a n / a
(i.c) Revaluation of other non-current investments (owner-occupied properties
and joint ventures)
TCHF 24,827 23,372
(ii) Revaluation of tenant leases held as finance leases TCHF n / a n / a
(iii) Revaluation of trading properties TCHF 27,681 26,244
Exclude
(iv) Fair value of financial instruments TCHF 57,187 38,998
(v.a) Deferred tax TCHF 143,683 166,480
(v.b) Goodwill as a result of deferred tax TCHF n / a n / a
Adjustments to (i) to (v) in respect of joint ventures TCHF 2,372 3,615
EPRA NAV TCHF 1,523,016 1,517,325
Diluted No. of shares outstanding 6,215,326 6,216,923
EPRA NAV per share CHF 245.04 244.06
C Triple Net Asset Value (NNNAV) Unit 30.06.2016 31.12.2015

B EPRA Net Asset Value Unit 30.06.2016 31.12.2015

EPRA NAV
TCHF
1,523,016 1,517,325
(i) Fair value of derivative financial instruments TCHF –57,187 –38,998
(ii) Fair value of financial liabilities TCHF –149,183 –105,976
(iii) Deferred tax TCHF –143,484 –166,483
EPRA NNNAV TCHF 1,173,162 1,205,869
Diluted No. of shares outstanding 6,215,326 6,216,923
EPRA NNNAV per share
CHF
188.75 193.97

The definitions of the above key performance measures can be found at www.epra.com.

D EPRA Net Initial Yield Unit 30.06.2016 31.12.2015
Investment properties – wholly owned TCHF 2,326,945 2,412,768
Investment properties – share of joint ventures/funds TCHF 40,347 38,154
Trading property TCHF 233,696 226,564
Less developments TCHF –430,146 –399,884
Completed property portfolio TCHF 2,170,842 2,277,602
Allowance for estimated purchasers' costs TCHF 0 0
Gross up completed property portfolio valuation TCHF 2,170,842 2,277,602
Annualised cash passing rental income TCHF 116,053 120,208
Direct cost of investment properties TCHF –16,052 –17,811
Annualised net rents TCHF 100,001 102,397
Add: additional notional rent expiration of rent free periods or other lease incentives TCHF 0 0
Topped-up net annualised rent TCHF 100,001 102,397
EPRA net initial yield % 4.6 4.5
EPRA "topped-up" net initial yield % 4.6 4.5
EPRA vacancy rate % 4.9 4.7
Estimated rental income from overall portfolio TCHF 110,030 114,301
Estimated rental income potential from vacant space TCHF 5,365 5,376
E EPRA Vacancy Rate Unit 30.06.2016 31.12.2015

The definitions of the above key performance measures can be found at www.epra.com.

ADDITIONAL INFORMATION

Contact addresses

Mobimo Holding AG

Rütligasse 1 CH-6000 Lucerne 7 Tel. +41 41 249 49 80 Fax +41 41 249 49 89 www.mobimo.ch

Mobimo Management AG

Seestrasse 59 CH-8700 Küsnacht Tel. +41 44 397 11 11 Fax +41 44 397 11 12

Mobimo Management SA

Rue de Genève 7 CH-1003 Lausanne Tel. +41 21 341 12 12 Fax +41 21 341 12 13

Contact for investors

Dr. Christoph Caviezel, CEO Manuel Itten, CFO Tel. +41 44 397 11 95 [email protected]

Share register

Tel. +41 44 809 58 58 [email protected]

The Half-Year Report 2016 is also available in French and German. Only the German original is legally binding.

Publishing details

Overall responsibility: Mobimo Holding AG

Development of content and design concept, consulting and production: PETRANIX Corporate and Financial Communications AG, Adliswil-Zurich

Photos: Mike Kessler, www.profifoto.ch Didier Oberson, www.didier-oberson.ch

Mobimo Holding AG

Rütligasse 1 CH-6000 Lucerne 7 Tel. +41 41 249 49 80 Fax +41 41 249 49 89 www.mobimo.ch

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